119-s853

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 853 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 853

To improve the SBIR and STTR programs under the Small Business Act, and 
 for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 March 5, 2025

 Ms. Ernst introduced the following bill; which was read twice and 
 referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

 A BILL

To improve the SBIR and STTR programs under the Small Business Act, and 
 for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Investing in 
National Next-Generation Opportunities for Venture Acceleration and 
Technological Excellence'' or the ``INNOVATE Act''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.
 TITLE I--PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES

Sec. 101. Enhancing small business success in the STTR program.

Sec. 102. Phase II strategic breakthrough funding.

Sec. 103. Implementation briefings.

Sec. 104. Fixed-price contracts.
 TITLE II--ENCOURAGING SMALL BUSINESS INNOVATION IN ALL OF AMERICA

Sec. 201. Encouraging new SBIR and STTR entrants.

Sec. 202. Combating discriminatory practices in the SBIR and STTR 
 programs.
 TITLE III--STREAMLINING PARTICIPATION IN THE SBIR AND STTR PROGRAMS

Sec. 301. Definition of open topics.

Sec. 302. Reducing administrative burden.
 TITLE IV--PROTECTING AMERICAN INNOVATION FROM ADVERSARIAL INFLUENCE

Sec. 401. Definition of foreign risk.

Sec. 402. Bolstering research security of SBIR and STTR awards.

Sec. 403. Strengthening the due diligence program to assess security 
 risks.

Sec. 404. Strengthening agency recovery authority.

Sec. 405. Best practices on investor informational rights.

Sec. 406. GAO report.
 TITLE V--SIMPLIFYING SBIR-STTR COMMERCIALIZATION STANDARDS

Sec. 501. Streamlining transition and commercialization rate 
 benchmarks.

Sec. 502. Improving direct to Phase II authorities.

Sec. 503. Improving SBIR-STTR data collection.

Sec. 504. Streamlining program administration.

Sec. 505. Extending SBIR and STTR authorization.

SEC. 2. DEFINITIONS.

 In this Act, the terms ``Phase I'', ``Phase II'', ``Phase III'', 
``SBIR'', and ``STTR'' have the meanings given those terms in 

section 9

    (e) of the Small Business Act (15 U.S.C. 638

    (e) ).

 TITLE I--PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES

SEC. 101. ENHANCING SMALL BUSINESS SUCCESS IN THE STTR PROGRAM.

 

Section 9 of the Small Business Act (15 U.S.C. 638 et seq.) is 
amended--

    (1) in subsection

    (e) --
        (A) in paragraph

    (6) --
            (i) in subparagraph
        (A) , by adding ``and'' 
 at the end; and
            (ii) by striking subparagraphs
        (B) and
            (C) and inserting the following:
 ``
        (B) opportunities for follow-on funding in Phases 
 II and III of the SBIR program;''; and
        (B) in paragraph

    (7) --
            (i) by striking ``40'' and inserting 
 ``50''; and
            (ii) by striking ``30'' and inserting 
 ``20'';

    (2) in subsection

    (f)

    (1) --
        (A) in subparagraph
        (H) , by striking ``and'' at the 
 end;
        (B) in subparagraph
            (I) , by striking ``and each 
 fiscal year thereafter,'' and inserting ``; and''; and
            (C) by adding at the end the following:
 ``
        (J) not less than 3.45 percent of such budget in 
 fiscal year 2026 and every year thereafter,''; and

    (3) in subsection

    (n) --
        (A) in paragraph

    (1)
        (B) --
            (i) in clause
            (iv) , by striking ``and'' at 
 the end;
            (ii) in clause
            (v) , by striking ``and each 
 fiscal year thereafter.'' and inserting ``; 
 and''; and
            (iii) by adding at the end the following:
 ``
            (vi) not less than 0.20 percent for 
 fiscal year 2026 and each fiscal year 
 thereafter.'';
        (B) by redesignating paragraphs

    (2) and

    (3) as 
 paragraphs

    (3) and

    (4) , respectively; and
            (C) by inserting after paragraph

    (1) the following:
 ``

    (2) Purpose of sttr program.--
 ``
        (A) In general.--Each Federal agency shall use 
 its STTR budget to fund small business concerns 
 conducting fundamental, basic, or other scientific 
 research that stands to benefit most from partnerships 
 with eligible research institutions.
 ``
        (B) DoD and nasa.--The Department of Defense and 
 the National Aeronautics and Space Administration shall 
 use their STTR budget to solely fund research at 
 technology readiness levels 1, 2, and 3.''.

SEC. 102. PHASE II STRATEGIC BREAKTHROUGH FUNDING.

    (a) In General.--

Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is amended--

    (1) by redesignating subsection

    (y) as paragraph

    (3) , 
 adjusting the margins accordingly, and moving it so as to 
 appear in subsection

    (ff) after paragraph

    (2) ;

    (2) in subsection

    (aa) , by adding at the end the following:
 ``

    (6) Strategic breakthrough allocation.--The Department of 
 Defense or its components shall not be required to receive a 
 waiver from the Administrator to award a small business concern 
 not more than $30,000,000 when using funds made available under 
 a strategic breakthrough allocation.'';

    (3) in subsection

    (ff) --
        (A) in the subsection heading, by striking ``and 
 STTR'' and inserting ``Phase II'';
        (B) in paragraph

    (1) , by striking ``or Phase II 
 STTR award''; and
            (C) in paragraph

    (3) , as so redesignated--
            (i) in the paragraph heading, by striking 
 ``Commercialization readiness program'' and 
 inserting ``Strategic breakthrough awards'';
            (ii) in subparagraph
        (A) , as so 
 redesignated--
            (I) in the first sentence, by 
 striking ``create and administer a 
 `Commercialization Readiness Program''' 
 and inserting ``provide funding''; and
            (II) in the second sentence, by 
 striking ``create and administer a 
 Commercialization Program under this 
 subsection'' and inserting ``provide 
 funding under this paragraph'';
            (iii) in subparagraph
        (B) , as so 
 redesignated--
            (I) in the first sentence, by 
 striking ``In carrying out the 
 Commercialization Readiness Program'' 
 and inserting the following:
 ``
            (i) In general.--In carrying out this 
 paragraph'';
            (II) in clause
            (i) , as so 
 designated--

    (aa) by striking ``shall 
 identify'' and inserting 
 ``shall--
 ``
            (I) identify'';

    (bb) in subclause
            (I) , as 
 so designated, by striking the 
 period at the end and inserting 
 a semicolon; and
            (cc) by adding at the end 
 the following:
 ``
            (II) ensure, in collaboration 
 with SBIR program managers of each 
 component of the Department of Defense, 
 that research programs identified under 
 subclause
            (I) are analyzed within the 
 programming and budgeting process as 
 budget requests are developed; and
 ``
            (III) provide to the Committee on 
 Small Business and Entrepreneurship of 
 the Senate and the Committees on Small 
 Business and Science, Space, and 
 Technology of the House of 
 Representatives information on the 
 integration of SBIR and STTR awardees 
 in budget rollouts for research, 
 development, testing, and evaluation 
 activities.''; and
            (III) by adding at the end the 
 following:
 ``
            (ii) Award.--Under this paragraph, a 
 funding agreement may be awarded to a small 
 business concern by the Department of Defense 
 using funds made available under a strategic 
 breakthrough allocation, as defined in 
 subparagraph
            (C) 
            (i) .'';
            (iv) by striking subparagraphs
            (C) ,
            (D) , 
 and
        (E) , as so redesignated, and inserting the 
 following:
 ``
            (C) Funding parameters.--
 ``
            (i) === Definition. ===
-In this subparagraph, 
 the term `strategic breakthrough allocation' 
 means a required expenditure amount for the 
 Department of Defense within the SBIR 
 allocation under subsection

    (f)

    (1) for fiscal 
 year 2026 and every fiscal year thereafter of 
 not less than 0.25 percent of the extramural 
 budget for research or research and development 
 designated for the Department of Defense.
 ``
            (ii) Requirements.--In the case of a 
 Phase II agreement that is awarded to a small 
 business concern by the Department of Defense 
 using funds made available under a strategic 
 breakthrough allocation, the following 
 requirements shall apply:
 ``
            (I) Award size and period of 
 performance.--The Department of Defense 
 may award not more than 1 award of not 
 more than $30,000,000 per small 
 business concern, including its 
 affiliates, spinouts, or subsidiaries, 
 from the strategic breakthrough 
 allocation with a period of performance 
 of not more than 48 months.
 ``
            (II) Small business concern 
 requirements.--The small business 
 concern shall--
 ``

    (aa) have been awarded 
 not less than 1 prior Phase II 
 award under the SBIR program;
 ``

    (bb) demonstrate not less 
 than 100 percent matching funds 
 through new outside capital or 
 amounts awarded by the 
 Department of Defense under a 
 program other than Phase I and 
 II of the SBIR or STTR program 
 as a result of an award using 
 funds made available under a 
 strategic breakthrough 
 allocation;
 ``
            (cc) have been awarded 
 not more than $50,000,000 in 
 cumulative Department of 
 Defense contracts or awards; 
 and
 ``
            (dd) only be eligible for 
 an award from the strategic 
 breakthrough allocation if the 
 product, process, or technology 
 of the small business concern--

 ``

    (AA) meets a 
 necessary level of 
 readiness and has a 
 commitment for 
 inclusion in a program 
 objective memorandum 
 from an official with 
 the rank of program 
 executive officer or 
 higher in an 
 acquisition 
 organization of the 
 Department of Defense;

 ``

    (BB) is an 
 effective solution, as 
 determined by market 
 research; and

 ``
            (CC) will meet 
 high priority military 
 requirements or 
 operational needs of a 
 military department 
 through a successful 
 transition and into the 
 acquisition process.

 ``
            (III) Deadline.--The Department 
 of Defense shall complete any contract 
 awards using strategic breakthrough 
 allocation funds not later than 90 days 
 after receiving a proposal from a small 
 business concern for the award.
 ``
            (IV) Eligible activities.--
 Eligible activities by a small business 
 concern using strategic breakthrough 
 allocation funds are--
 ``

    (aa) design for 
 manufacturing;
 ``

    (bb) establishing 
 manufacturing facilities, 
 tooling, and supply chain 
 capacity;
 ``
            (cc) buying raw materials 
 or inventory;
 ``
            (dd) the integration of 
 products with open 
 interoperability standards;
 ``

    (ee) testing, evaluation, 
 and certification of low-rate 
 production units; and
 ``

    (ff) the purchase of 
 production units and 
 maintenance.
 ``
            (V) Selection criteria.--In 
 making awards, the Department of 
 Defense shall consider--
 ``

    (aa) the potential of the 
 small business concern to--

 ``

    (AA) advance the 
 national security 
 capabilities of the 
 United States;

 ``

    (BB) provide new 
 technologies or 
 processes, or new 
 applications of 
 existing technologies, 
 that will enable new 
 alternatives to 
 existing programs;

 ``
            (CC) provide 
 future cost savings; 
 and

 ``
            (DD) enhance the 
 lethality and 
 efficiency of the 
 United States military;

 ``

    (bb) whether a major 
 system or customer in the 
 Department of Defense has 
 expressed intent to purchase 
 and integrate technology from 
 the small business concern into 
 its operations; and
 ``
            (cc) such other criteria 
 that the Department of Defense 
 determines to be appropriate.
 ``
            (D) Acquisition mechanism.--The Department of 
 Defense shall establish a mechanism, such as a major 
 system, to provide small business concerns with direct 
 access to program and requirements offices throughout 
 the Department of Defense that may purchase technology 
 from small business concerns under Phase III of the 
 SBIR program of the Department of Defense.
 ``
        (E) Operational needs.--The Department of Defense 
 shall allow services to provide operational needs 
 statements directly to chiefs of requirements 
 offices.''; and
            (v) in subparagraph
        (F) , as so 
 redesignated--
            (I) by amending clause
            (i) to read 
 as follows:
 ``
            (i) set a goal to substantively increase 
 the number of Phase II SBIR contracts awarded 
 by the Secretary that lead to technology 
 transition into programs of record or fielded 
 systems in fiscal year 2028 compared to fiscal 
 year 2025; and'';
            (II) by striking clause
            (ii) ;
            (III) by redesignating clause
            (iii) as clause
            (ii) ; and
            (IV) in clause
            (ii) , as so 
 redesignated--

    (aa) in subclause
            (I) , by 
 adding ``and'' at the end;

    (bb) in subclause
            (II) --

    (AA) by striking 
 ``through the 
 Commercialization 
 Readiness Program'' and 
 inserting ``under a 
 strategic breakthrough 
 allocation''; and

    (BB) by striking 
 ``; and'' and inserting 
 a period; and
            (cc) by striking subclause
            (III) ; and

    (4) by redesignating subsection
            (xx) , entitled ``Additional 
 Provisions Relating to Solicitation Topics'', as subsection

    (y) , and moving it so as to appear after subsection
            (x) .

    (b) Technical and Conforming Amendments.--

Section 9 of the Small 
Business Act (15 U.S.C. 638), as amended by this Act, is amended--

    (1) in subsection
            (i) (1) , by striking ``subsection

    (y) '' 
 and inserting ``subsection

    (ff)

    (3) '';

    (2) in subsection
            (mm) (1)
            (D) , by striking ``subsection

    (y) '' and inserting ``subsection

    (ff)

    (3) ''; and

    (3) in subsection

    (tt) , by striking ``

    (y)

    (6)
            (C) '' and 
 inserting ``

    (ff)

    (3)
        (F)
            (ii) ''.

SEC. 103. IMPLEMENTATION BRIEFINGS.

 Not later than 60 days after the date of enactment of this Act, and 
on a recurrent basis until implementation is complete, the Secretary of 
Defense shall brief the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business and 
the Committee on Science, Space, and Technology of the House of 
Representatives on the implementation of paragraph

    (3) of 

section 9

    (ff) of the Small Business Act (15 U.S.C. 638

    (ff) ), as added by 

section 102.

SEC. 104. FIXED-PRICE CONTRACTS.

 

Section 9 of the Small Business Act (15 U.S.C. 638) is amended--

    (1) in subsection

    (f) , by adding at the end the following:
 ``

    (5) Fixed-price contract.--Any funding agreement that is 
 a contract made with expenditures allocated to the SBIR program 
 under paragraph

    (1) shall be a firm-fixed-price contract (as 
 defined in 

section 16.202 of the Federal Acquisition 
 Regulation), unless, on a case-by-case basis, the head of the 
 awarding Federal agency makes a written determination to 
 utilize a different contract structure.''; and

    (2) in subsection

    (n) , as amended by 

section 101, by adding 
 at the end the following:
 ``

    (5) Fixed-price contract.--Any funding agreement that is 
 a contract made with expenditures allocated to the STTR program 
 under paragraph

    (1) shall be a firm-fixed-price contract (as 
 defined in 

section 16.202 of the Federal Acquisition 
 Regulation), unless the head of the awarding Federal agency 
 makes a written determination to utilize a different contract 
 structure.''.

 TITLE II--ENCOURAGING SMALL BUSINESS INNOVATION IN ALL OF AMERICA

SEC. 201. ENCOURAGING NEW SBIR AND STTR ENTRANTS.

    (a) In General.--

    (1) Encouraging new sbir and sttr entrants.--

Section 9

    (jj) of the Small Business Act (15 U.S.C. 638

    (jj) ) is amended to 
 read as follows:
 ``

    (jj) Encouraging New SBIR and STTR Entrants.--
 ``

    (1) Optimizing sbir and sttr funding.--A small business 
 concern, including its affiliates, spinouts, or subsidiaries, 
 may not apply to a Phase I or Phase II solicitation under an 
 SBIR or STTR program if the small business concern, including 
 its affiliates, spinouts, or subsidiaries, has previously 
 received over $75,000,000 in funding from SBIR or STTR Phase I 
 and Phase II awards.
 ``

    (2) Primary investigators.--An individual may not 
 concurrently serve as the primary investigator on more than 1 
 proposal to a single Phase I solicitation or a single Phase II 
 solicitation.
 ``

    (3) Phase i size standard.--A small business concern 
 applying for a Phase I award may not have annual receipts (as 
 defined in 

section 121.104 of title 13, Code of Federal 
 Regulations, or any successor regulation) of more than 
 $40,000,000 for the most recent fiscal year.''.

    (2) Conforming amendment.--

Section 9

    (tt)

    (1)
        (A) of the Small 
 Business Act (15 U.S.C. 638

    (tt)

    (1)
        (A) ) by striking ``,

    (jj)

    (6) ''.

    (b) Phase 1A Program.--

Section 9 of the Small Business Act (15 
U.S.C. 638), as amended by this Act, is amended--

    (1) in subsection

    (e)

    (4) --
        (A) in subparagraph
        (A) , by striking ``subparagraph
        (B) '' and inserting ``subparagraph
            (C) '';
        (B) by redesignating subparagraphs
        (B) and
            (C) as 
 subparagraphs
            (C) and
            (D) ; and
            (C) by inserting after subparagraph
        (A) , the 
 following:
 ``
        (B) a 1A phase for the same purposes as the first 
 phase described under subparagraph
        (A) and intended to 
 increase accessibility to the program for new entrants, 
 with proposals submitted pursuant to only SBIR open 
 topic announcements;''; and

    (2) by amending subsection

    (pp) to read as follows:
 ``

    (pp) Phase 1A Awards.--
 ``

    (1) Sense of congress.--It is the sense of Congress 
 that--
 ``
        (A) Phase 1A funds will bring thousands of new 
 small business concerns committed to commercialization 
 of critical technologies into the SBIR program; and
 ``
        (B) in order for participating agencies to 
 benefit from the full scope of American innovation and 
 identify the most promising solutions to scale, Phase 
 1A awards should fund the strongest technologies in a 
 topic area regardless of--
 ``
            (i) the location of the small business 
 concern within the United States; or
 ``
            (ii) the educational background of the 
 principal investigator.
 ``

    (2) Authorization.--The head of each agency with an SBIR 
 program shall allocate not less than 2.5 percent of funding for 
 the SBIR program of the agency to Phase 1A awards.
 ``

    (3) Solicitation.--A solicitation issued under this 
 subsection shall be conducted as an open topic announcement, as 
 defined in subsection

    (e) .
 ``

    (4) Eligibility.--In order to be eligible for an award 
 under this subsection, a small business concern, including its 
 affiliates, spinouts, or subsidiaries, shall not have 
 previously received an SBIR or STTR award.
 ``

    (5) Proposal.--
 ``
        (A) In general.--A proposal submitted in response 
 to a solicitation under this subsection shall consist 
 of a report of no more than 2 pages in length and shall 
 contain the criteria described in subparagraph
        (B) .
 ``
        (B) Criteria.--
 ``
            (i) Identification of problem.--The small 
 business concern shall describe the problem 
 that the proposal is intended to address for 
 the awarding agency and any commercial 
 customer.
 ``
            (ii) Description of solution.--The small 
 business concern shall describe the proposed 
 solution, including the technical basis for the 
 solution to demonstrate how the solution would 
 address the problem described in the proposal, 
 including the level of maturity of the solution 
 at the time of the proposal.
 ``
            (iii) Impact of the solution.--The small 
 business concern shall describe how adoption of 
 the proposed solution would produce potential 
 time savings, cost savings, risk reduction, 
 improvement of mission outcomes, or any other 
 beneficial impact for the awarding agency and 
 any commercial customer.
 ``
            (iv) Differentiation.--The small business 
 concern shall--
 ``
            (I) identify the state of 
 solutions in use at the time of the 
 proposal to address the problem 
 described in the proposal; and
 ``
            (II) explain how the proposed 
 solution is a unique and novel 
 solution.
 ``
            (v) Commercialization strategy.--The 
 small business concern shall--
 ``
            (I) describe how the small 
 business concern intends to fund the 
 proposed solution; and
 ``
            (II) explain the market for the 
 proposed solution, including the 
 intended Government and commercial end 
 users.
 ``

    (6) Award limits.--
 ``
        (A) Number of awards.--A small business concern 
 or principal investigator is eligible for not more than 
 1 Phase 1A award.
 ``
        (B) Amount.--An award made under this subsection 
 shall be for not more than $40,000.
 ``

    (7) Notification of selection or non-selection.--Each 
 agency shall notify each small business concern of the award 
 decision of the agency on any proposal submitted by the small 
 business concern not later than 90 days after the date on which 
 the solicitation closes.
 ``

    (8) Application for phase ii award.--
 ``
        (A) Eligibility.--A small business concern that 
 receives a Phase 1A award shall be eligible to apply 
 for a Phase II award.
 ``
        (B) Use of funds.--A small business concern may 
 use funds from a Phase 1A award to develop a proposed 
 solution in pursuit of a subsequent proposal for a 
 Phase I award or a Phase II award.''.

SEC. 202. COMBATING DISCRIMINATORY PRACTICES IN THE SBIR AND STTR 
 PROGRAMS.

 

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended--

    (1) in subsection

    (b)

    (7)
            (C) , by striking ``owned and 
 controlled by women or by socially and economically 
 disadvantaged individuals'' and inserting ``owned by 
 individuals who reside in emerging States or rural areas'';

    (2) in subsection

    (e) --
        (A) in paragraph

    (18) , by striking ``and'' at the 
 end;
        (B) in paragraph

    (19) , by striking the period at 
 the end and inserting a semicolon; and
            (C) by adding at the end the following:
 ``

    (20) the term `emerging State' means the 25 States with 
 the fewest combined number of award recipients in the SBIR 
 program and the STTR program that have received their first 
 Phase I award in the previous 10 fiscal years;
 ``

    (21) the term `rural area' means a county or other 
 political subdivision of a State that the Bureau of the Census 
 has defined as mostly rural or completely rural in the most 
 recent decennial census;'';

    (3) in subsection

    (g)

    (8)
        (A) --
        (A) by striking clause
            (iii) ;
        (B) by redesignating clauses
            (iv) ,
            (v) , and
            (vi) as 
 clauses
            (iii) ,
            (iv) , and
            (v) , respectively; and
            (C) in clause
            (iii) , as so redesignated, by 
 striking ``a socially or economically disadvantaged 
 individual or has a socially or economically 
 disadvantaged individual'' and inserting ``an 
 individual who resides in an emerging State or rural 
 area or has an individual who resides in an emerging 
 State or rural area'';

    (4) in subsection

    (j) --
        (A) by adjusting the margins for paragraphs

    (2) and

    (3) 2 ems to the left; and
        (B) in paragraph

    (2) --
            (i) by striking subparagraph
        (F) ;
            (ii) by redesignating subparagraphs
        (G) ,
        (H) , and
            (I) as subparagraphs
        (F) ,
        (G) , and
        (H) ; and
            (iii) in subparagraph
        (H) , as so 
 redesignated, by striking ``subparagraph
        (H) '' 
 and inserting ``subparagraph
        (G) '';

    (5) in subsection

    (k)

    (1)
        (F) --
        (A) by striking clause
            (ii) ;
        (B) by redesignating clauses
            (iii) ,
            (iv) , and
            (v) as clauses
            (ii) ,
            (iii) , and
            (iv) , respectively; and
            (C) in clause
            (ii) , as so redesignated, by striking 
 ``a socially or economically disadvantaged individual 
 or has a socially or economically disadvantaged 
 individual'' and inserting ``an individual who resides 
 in an emerging State or rural area or has an individual 
 who resides in an emerging State or rural area'';

    (6) in subsection

    (o)

    (9)
        (A) --
        (A) by striking clause
            (iii) ;
        (B) by redesignating clauses
            (iv) ,
            (v) , and
            (vi) as 
 clauses
            (iii) ,
            (iv) , and
            (v) , respectively; and
            (C) in clause
            (iii) , as so redesignated, by 
 striking ``a socially or economically disadvantaged 
 individual or has a socially or economically 
 disadvantaged individual'' and inserting ``an 
 individual who resides in an emerging State or rural 
 area or has an individual who resides in an emerging 
 State or rural area''; and

    (7) in subsection
            (mm) --
        (A) in paragraph

    (1) --
            (i) in the matter preceding subparagraph
        (A) , by striking ``and until September 30, 
 2025''; and
            (ii) in subparagraph
        (F) , by striking ``or 
 abuse to ensure compliance'' and inserting 
 ``abuse, or adversarial influence to ensure 
 compliance'';
        (B) in paragraph

    (2)
        (A) , by striking ``to carry out 
 the policy directive required under subsection

    (j)

    (2)
        (F) and'' and inserting ``to increase the 
 participation of States with respect to which a low 
 level of SBIR awards have historically been awarded''; 
 and
            (C) by adding at the end the following:
 ``

    (7) Eligibility.--For an agency to be eligible to utilize 
 funds allocated to the SBIR program of that Federal agency 
 under this subsection, the agency shall not--
 ``
        (A) consider the race, gender, or ethnicity of 
 the principal investigator, founder, or key personnel 
 of the small business concern applying for an SBIR or 
 STTR award in an award decision under the SBIR or STTR 
 program of the agency;
 ``
        (B) require or consider a statement or plan to 
 promote diversity or equity as part of an application 
 for an SBIR or STTR award under the SBIR or STTR 
 program of the agency; or
 ``
            (C) offer supplemental funds to a recipient of an 
 SBIR or STTR award based on the race, gender, or 
 ethnicity of the principal investigator, founder, or 
 key personnel of a small business concern.''.

 TITLE III--STREAMLINING PARTICIPATION IN THE SBIR AND STTR PROGRAMS

SEC. 301. DEFINITION OF OPEN TOPICS.

 

Section 9

    (e) of the Small Business Act (15 U.S.C. 638

    (e) ), as 
amended by 

section 202

    (2) , is amended by adding at the end the 
following:
 ``

    (22) the term `open topic announcement' means a 
 solicitation for SBIR or STTR proposals that--
 ``
        (A) is a generalized problem statement or broad 
 technology area and does not contain any language 
 requiring that the solutions that a small business 
 concern proposes adhere to specific technological 
 specifications; and
 ``
        (B) evaluates the ability of the solution 
 proposed by the small business concern to meet the 
 stated innovation need of the agency or Government end 
 user; and''.

SEC. 302. REDUCING ADMINISTRATIVE BURDEN.

 

Section 9

    (jj) of the Small Business Act (15 U.S.C. 638

    (jj) ), as 
amended by 

section 201

    (a)

    (1) , is amended by adding at the end the 
following:
 ``

    (4) Reducing administrative burden.--
 ``
        (A) Limit on submissions to a solicitation.--A 
 small business concern, including its affiliates, 
 spinouts, or subsidiaries, may not submit more than 3 
 proposals to a single Phase I solicitation or a single 
 Phase II solicitation under subsection
            (cc) .
 ``
        (B) Limit on submissions in a single year.--A 
 small business concern, including its affiliates, 
 spinouts, or subsidiaries, may not submit more than a 
 combined total of 25 proposals to Phase I solicitations 
 or Phase II solicitations under subsection
            (cc) published by a single agency, including the components 
 of the agency, in a single fiscal year.''.

 TITLE IV--PROTECTING AMERICAN INNOVATION FROM ADVERSARIAL INFLUENCE

SEC. 401. DEFINITION OF FOREIGN RISK.

 

Section 9

    (e) of the Small Business Act (15 U.S.C. 638

    (e) ), as 
amended by 

section 301, is amended by adding at the end the following:
 ``

    (23) the term `foreign risk' means, in the past 10 years, 
 any foreign affiliation, technology licensing agreement, joint 
 venture, contractual or financial obligation (pending or 
 otherwise), investment agreement, research relationship 
 (including co-authorship), or business relationship between--
 ``
        (A) a small business concern (including all 
 subsidiaries, spinouts, and affiliates) submitting a 
 proposal for an SBIR or STTR program, and covered 
 individuals, owners, or other key personnel of the 
 small business concern; and
 ``
        (B) an individual, research institution, business 
 entity, government, or government-owned entity in a 
 foreign country of concern that is disclosed, as 
 required under subsection

    (g) or subsection

    (o) , or 
 otherwise identified in the due diligence process, as 
 required under subsection
            (vv) .''.

SEC. 402. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS.

 

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended--

    (1) in subsection

    (g) --
        (A) by redesignating paragraphs

    (15) ,

    (16) , and

    (17) as paragraphs

    (16) ,

    (18) and

    (19) , respectively;
        (B) by inserting after paragraph

    (14) the 
 following:
 ``

    (15) evaluate whether a small business concern presents a 
 risk to national security for any reason, through measures 
 including--
 ``
        (A) the due diligence process required under 
 subsection
            (vv) ;
 ``
        (B) disclosures submitted under this subsection; 
 or
 ``
            (C) coordination with the Inspector General of 
 the agency or the intelligence community (as defined 
 under 

section 3 of the National Security Act of 1947 
 (50 U.S.C. 3003));'';
            (C) in paragraph

    (16) , as so redesignated--
            (i) by striking subparagraph
        (B) ;
            (ii) by striking ``that--'' and all that 
 follows through ``the small business concern 
 submitting'' and inserting ``that the small 
 business concern submitting'';
            (iii) by redesignating clauses
            (i) ,
            (ii) , 
 and
            (iii) as subparagraphs
        (A) ,
        (B) , and
            (C) , 
 respectively, and adjusting the margins 
 accordingly;
            (iv) in subparagraph
        (B) , as so 
 redesignated, by striking ``or'' at the end;
            (v) in subparagraph
            (C) , as so 
 redesignated, by striking ``and'' at the end; 
 and
            (vi) by adding at the end the following:
 ``
            (D) has a foreign risk connecting the small 
 business concern to an entity, including any 
 affiliates, spinouts, or subsidiaries of the entity, or 
 individual on one or more of the following lists:
 ``
            (i) the UFLPA Entity List maintained by 
 the Department of Homeland Security;
 ``
            (ii) the Non-SDN Chinese Military-
 Industrial Complex Companies List of the Office 
 of Foreign Assets Control maintained by the 
 Department of the Treasury;
 ``
            (iii) the 

Section 889 Prohibition List 
 established under 

section 889 of the John S. 
 McCain National Defense Authorization Act for 
 Fiscal Year 2019 (Public Law 115-232) and 
 maintained by the Department of Defense;
 ``
            (iv) the list of Chinese Military 
 companies required under 

section 1260H of the 
 William M.

    (Mac) Thornberry National Defense 
 Authorization Act for Fiscal Year 2021 (Public 
 Law 116-283) and maintained by the Department 
 of Defense;
 ``
            (v) the Military End User List maintained 
 by the Bureau of Industry and Security of the 
 Department of Commerce;
 ``
            (vi) the Entity List maintained by the 
 Bureau of Industry and Security of the 
 Department of Commerce;
 ``
            (vii) the List of Equipment and Services 
 maintained by the Federal Communications 
 Commission; and
 ``
            (viii) the Withhold Release Orders and 
 Findings List maintained by U.S. Customs and 
 Border Protection;
 ``
        (E) has a foreign risk with a primary source that 
 is classified; or
 ``
        (F) has a foreign risk or another national 
 security risk not listed in statute or regulatory 
 guidance that an agency determines warrants a 
 denial;'';
            (D) by inserting after paragraph

    (16) , as so 
 redesignated, the following:
 ``

    (17) not, and any personnel of the Federal agency 
 including technical points of contact shall not, communicate to 
 an applicant prior to formal notification of an award decision 
 that an application was denied due to a foreign risk;''; and
        (E) in paragraph

    (19) , as so redesignated--
            (i) in subparagraph
        (B) , by striking 
 ``

    (16)
        (A) '' and inserting ``

    (18)
        (A) ''; and
            (ii) in subparagraph
            (C) , by striking 
 ``

    (16)
        (B) '' and inserting ``

    (18)
        (B) ''; and

    (2) in subsection

    (o) --
        (A) by redesignating paragraphs

    (19) ,

    (20) , and

    (21) as paragraphs

    (20) ,

    (22) and

    (23) , respectively;
        (B) by inserting after paragraph

    (18) the 
 following:
 ``

    (19) evaluate whether a small business concern presents a 
 risk to national security for any reason, through measures 
 including--
 ``
        (A) the due diligence process required under 
 subsection
            (vv) ;
 ``
        (B) disclosures submitted under this subsection; 
 or
 ``
            (C) coordination with the Inspector General of 
 the agency or the intelligence community (as defined 
 under 

section 3 of the National Security Act of 1947 
 (50 U.S.C. 3003));'';
            (C) in paragraph

    (20) , as so redesignated--
            (i) by striking subparagraph
        (B) ;
            (ii) by striking ``that--'' and all that 
 follows through ``the small business concern 
 submitting'' and inserting ``that the small 
 business concern submitting'';
            (iii) by redesignating clauses
            (i) ,
            (ii) , 
 and
            (iii) as subparagraphs
        (A) ,
        (B) , and
            (C) , 
 respectively, and adjusting the margins 
 accordingly;
            (iv) in subparagraph
        (B) , as so 
 redesignated, by striking ``or'' at the end;
            (v) in subparagraph
            (C) , as so 
 redesignated, by striking ``and'' at the end; 
 and
            (vi) by adding at the end the following:
 ``
            (D) has a foreign risk connecting the small 
 business concern to an entity, including any 
 affiliates, spinouts, or subsidiaries of the entity, or 
 individual on one or more of the following lists:
 ``
            (i) the UFLPA Entity List maintained by 
 the Department of Homeland Security;
 ``
            (ii) the Non-SDN Chinese Military-
 Industrial Complex Companies List of the Office 
 of Foreign Assets Control maintained by the 
 Department of the Treasury;
 ``
            (iii) the 

Section 889 Prohibition List 
 established under 

section 889 of the John S. 
 McCain National Defense Authorization Act for 
 Fiscal Year 2019 (Public Law 115-232) and 
 maintained by the Department of Defense;
 ``
            (iv) the list of Chinese Military 
 companies required under 

section 1260H of the 
 William M.

    (Mac) Thornberry National Defense 
 Authorization Act for Fiscal Year 2021 (Public 
 Law 116-283) and maintained by the Department 
 of Defense;
 ``
            (v) the Military End User List maintained 
 by the Bureau of Industry and Security of the 
 Department of Commerce;
 ``
            (vi) the Entity List maintained by the 
 Bureau of Industry and Security of the 
 Department of Commerce;
 ``
            (vii) the List of Equipment and Services 
 maintained by the Federal Communications 
 Commission; and
 ``
            (viii) the Withhold Release Orders and 
 Findings List maintained by U.S. Customs and 
 Border Protection;
 ``
        (E) has a foreign risk with a primary source that 
 is classified; or
 ``
        (F) has a foreign risk or another national 
 security risk not listed in statute or regulatory 
 guidance that an agency determines warrants a 
 denial;'';
            (D) by inserting after paragraph

    (20) the 
 following:
 ``

    (21) not, and any personnel of the Federal agency 
 including technical points of contact shall not, communicate to 
 an applicant prior to formal notification of an award decision 
 that an application was denied due to a foreign risk;''; and
        (E) in paragraph

    (23) , as so redesignated--
            (i) in subparagraph
        (B) , by striking 
 ``

    (20)
        (A) '' and inserting ``

    (22)
        (A) ''; and
            (ii) in subparagraph
            (C) , by striking 
 ``

    (20)
        (B) '' and inserting ``

    (22)
        (B) ''.

SEC. 403. STRENGTHENING THE DUE DILIGENCE PROGRAM TO ASSESS SECURITY 
 RISKS.

 

Section 9
            (vv) (2) of the Small Business Act (15 U.S.C. 638
            (vv) (2) ) 
is amended--

    (1) in subparagraph
        (B) , by striking the period at the end 
 and inserting ``; and''; and

    (2) by adding at the end the following:
 ``
            (C) examine any relationship of a small business 
 concern seeking an award to any entity or individual 
 included on the lists, as published on the date of the 
 closing of the solicitation, described under 
 subsections

    (g)

    (16)
            (D) and

    (o)

    (20)
            (D) .''.

SEC. 404. STRENGTHENING AGENCY RECOVERY AUTHORITY.

 

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended--

    (1) in subsection

    (g)

    (18) , as redesignated by 

section 402--
        (A) in the matter preceding subparagraph
        (A) , by 
 inserting ``, as adjusted for inflation according to 
 the Consumer Price Index published by the Bureau of 
 Labor Statistics,'' after ``amounts'';
        (B) in subparagraph
        (A) --
            (i) by inserting ``during the 10-year 
 period beginning on the date of the award, or 
 during a longer or indefinite period as 
 determined by the head of the awarding agency 
 as necessary for national security,'' before 
 ``the small business concern''; and
            (ii) by striking ``or'' at the end;
            (C) in subparagraph
        (B) --
            (i) by inserting ``during the 10-year 
 period beginning on the date of the award, or 
 during a longer or indefinite period as 
 determined by the head of the awarding agency 
 as necessary for national security,'' before 
 ``there is a change''; and
            (ii) by striking ``and'' at the end; and
            (D) by adding at the end the following:
 ``
            (C) during the 5-year period beginning on the 
 date of the award, or during a longer or indefinite 
 period as determined by the head of the awarding agency 
 as necessary for national security, the small business 
 concern sells, leases, or provides (through joint 
 research, technological licensing, or otherwise) 
 intellectual property that was developed, wholly or in 
 part, using an SBIR award to a foreign entity or 
 individual unless the foreign entity or individual is 
 incorporated in or a citizen of a country that is a 
 member of the North Atlantic Treaty Organization or a 
 major non-NATO ally, as described under 

section 2321k 
 of title 22, United States Code; or
 ``
            (D) during the 10-year period beginning on the 
 date of the award, or during a longer or indefinite 
 period as determined by the head of the awarding agency 
 as necessary for national security, the small business 
 concern sells, leases, or provides (through joint 
 research, technological licensing, or otherwise) 
 intellectual property that was developed, wholly or in 
 part, using an SBIR award to an entity, government, or 
 individual in a foreign country of concern; and''; and

    (2) in subsection

    (o)

    (22) , as redesignated by 

section 402--
        (A) in the matter preceding subparagraph
        (A) , by 
 inserting ``, as adjusted for inflation according to 
 the Consumer Price Index published by the Bureau of 
 Labor Statistics,'' after ``amounts'';
        (B) in subparagraph
        (A) --
            (i) by inserting ``during the 10-year 
 period beginning on the date of the award, or 
 during a longer or indefinite period as 
 determined by the head of the awarding agency 
 as necessary for national security,'' before 
 ``the small business concern''; and
            (ii) by striking ``or'' at the end;
            (C) in subparagraph
        (B) --
            (i) by inserting ``during the 10-year 
 period beginning on the date of the award, or 
 during a longer or indefinite period as 
 determined by the head of the awarding agency 
 as necessary for national security,'' before 
 ``there is a change''; and
            (ii) by striking ``and'' at the end; and
            (D) by adding at the end the following:
 ``
            (C) during the 5 year period beginning on the 
 date of the award, or during a longer or indefinite 
 period as determined by the head of the awarding agency 
 as necessary for national security, the small business 
 concern sells, leases, or provides (through joint 
 research, technological licensing, or otherwise) 
 intellectual property that was developed, wholly or in 
 part, using an STTR award to a foreign entity or 
 individual unless the foreign entity or individual is 
 incorporated in or a citizen of a country that is a 
 member of the North Atlantic Treaty Organization or a 
 major non-NATO ally, as described under 

section 2321k 
 of title 22, United States Code; or
 ``
            (D) during the 10-year period beginning on the 
 date of the award, or during a longer or indefinite 
 period as determined by the head of the awarding agency 
 as necessary for national security, the small business 
 concern sells, leases, or provides (through joint 
 research, technological licensing, or otherwise) 
 intellectual property that was developed, wholly or in 
 part, using an STTR award to an entity, government, or 
 individual in a foreign country of concern; and''.

SEC. 405. BEST PRACTICES ON INVESTOR INFORMATIONAL RIGHTS.

 

Section 9

    (uu) of the Small Business Act (15 U.S.C. 638

    (uu) ) is 
amended to read as follows:
 ``

    (uu) Best Practices on Investor Informational Rights.--
 ``

    (1) In general.--The Administrator, in coordination with 
 the heads of all agencies with an SBIR program, the Director of 
 the White House Office of Science and Technology Policy, and 
 the Committee on Foreign Investment in the United States, shall 
 develop best practices to be shared with each recipient of an 
 SBIR or STTR award by the agency granting the award.
 ``

    (2) Contents.--The best practices developed under 
 paragraph

    (1) shall include recommendations for protecting the 
 proprietary technology and intellectual property of the small 
 business concern from being shared unintentionally to foreign 
 individuals and entities through informational rights of 
 limited partners in venture capital, hedge fund, or private 
 equity firms that have investments in SBIR or STTR 
 recipients.''.

SEC. 406. GAO REPORT.

 Paragraph

    (4) of 

section 4

    (b) of the SBIR and STTR Extension Act of 
2022 (Public Law 117-183; 136 Stat. 2194) is amended to read as 
follows:
 ``

    (4) GAO report.--
 ``
        (A) In general.--Not later than 1 year after the 
 date of enactment of the INNOVATE Act, and annually 
 thereafter for 3 years, the Comptroller General of the 
 United States shall conduct a study and submit to the 
 Committee on Small Business and Entrepreneurship and 
 the Committee on Armed Services of the Senate and the 
 Committee on Small Business, the Committee on Armed 
 Services, and the Committee on Science, Space, and 
 Technology of the House of Representatives a report on 
 the implementation and best practices of the due 
 diligence programs established under 

section 9
            (vv) of 
 the Small Business Act (15 U.S.C. 638
            (vv) ) across 
 Federal agencies required to establish an SBIR or STTR 
 program.
 ``
        (B) Study.--The study shall evaluate--
 ``
            (i) the effectiveness of each Federal 
 agency that participates in the SBIR program or 
 STTR program in identifying--
 ``
            (I) enhanced risk in 
 cybersecurity practices in SBIR and 
 STTR projects;
 ``
            (II) enhanced risk in patents, 
 including co-authorship with academics 
 in foreign countries of concern in SBIR 
 and STTR projects;
 ``
            (III) enhanced foreign influence 
 risk among employees of small business 
 concerns involved in SBIR and STTR 
 projects;
 ``
            (IV) foreign ownership of a small 
 business concern seeking an award, 
 including the financial ties and 
 obligations (which shall include 
 surety, equity, and debt obligations) 
 in SBIR and STTR projects; and
 ``
            (V) security risks among 
 applicants to the SBIR program or the 
 STTR program, including connections to 
 an entity, including any affiliates, 
 spinouts, or subsidiaries of the 
 entity, or individual on one or more of 
 the lists referenced in subsection

    (g)

    (16)
            (D) ;
 ``
            (ii) by year, the number of proposals and 
 number of small business concerns with foreign 
 risks by each Federal agency that participates 
 in the SBIR program or STTR program, including 
 a delineation of how many of those small 
 business concerns have previously received an 
 award under the SBIR program or STTR program 
 and the nature of those foreign risks made by 
 each Federal agency; and
 ``
            (iii) the extent to which the Inspector 
 General and counterintelligence authorities of 
 each Federal agency that participates in the 
 SBIR or STTR program effectively conducts 
 investigations, audits, inspections, and 
 outreach relating to the due diligence program 
 to assess security risks in the SBIR or STTR 
 program.''.

 TITLE V--SIMPLIFYING SBIR-STTR COMMERCIALIZATION STANDARDS

SEC. 501. STREAMLINING TRANSITION AND COMMERCIALIZATION RATE 
 BENCHMARKS.

 

Section 9

    (qq) of the Small Business Act (15 U.S.C. 638

    (qq) ) is 
amended--

    (1) by amending paragraph

    (1)
        (A)
            (ii) to read as follows:
 ``
            (ii) for small business concerns that 
 received or receive more than 10 Phase I 
 awards, establish a minimum performance 
 standard with respect to the receipt of Phase 
 II awards that shall be a ratio of at least 
 0.25 for the number of Phase II awards received 
 as compared to the number of Phase I awards 
 received; and''; and

    (2) in paragraph

    (3) --
        (A) in subparagraph
        (A) , by striking clauses
            (i) and
            (ii) and inserting the following:
 ``
            (i) In general.--With respect to a small 
 business concern that received or receives more 
 than 25 Phase I awards, the minimum performance 
 standard shall be a ratio of at least 0.5 for 
 the number of Phase II awards received as 
 compared to the number of Phase I awards 
 received.
 ``
            (ii) Consequence of failure to meet 
 standard.--If the head of a Federal agency 
 determines that a small business concern is not 
 meeting the applicable increased minimum 
 performance standard established under clause
            (i) , such small business concern may not 
 participate in Phase I of the SBIR or STTR 
 program of that agency during the 1-year period 
 beginning on the date on which such 
 determination is made and the small business 
 concern may not receive more than 5 total Phase 
 I awards from that agency during each 1-year 
 period thereafter until the small business 
 concern surpasses the minimum performance 
 standard established under clause
            (i) .''; and
        (B) in subparagraph
        (B) --
            (i) in clause
            (i) , by striking subclauses
            (I) and
            (II) and inserting the following:
 ``
            (I) with respect to a small 
 business concern, including its 
 affiliates, spinouts, and subsidiaries, 
 that has received more than 25 Phase II 
 awards over its lifetime, require the 
 sum of the annual receipts (as defined 
 in 

section 121.104 of title 13, Code of 
 Federal Regulations, or any successor 
 regulation) of the small business 
 concern from sources other than Phase I 
 or Phase II SBIR or STTR awards and 
 investments received by the small 
 business concern to at minimum exceed 
 the sum of the dollars awarded through 
 Phase I and Phase II awards since the 
 date of the first such award; and
 ``
            (II) with respect to a small 
 business concern, including its 
 affiliates, spinouts, and subsidiaries, 
 that receives more than 25 Phase II 
 awards over its lifetime, require a 
 minimum of 65 percent of the sum of the 
 annual receipts (as defined in 

section 121.104 of title 13, Code of Federal 
 Regulations, or any successor 
 regulation) of the small business 
 concern and investments received by the 
 small business concern during the 3 
 years preceding the most recent fiscal 
 year come from sources other than Phase 
 I or Phase II SBIR or STTR awards.''; 
 and
            (ii) by amending clause
            (ii) to read as 
 follows:
 ``
            (ii) Consequence of failure to meet 
 standard.--If the head of a Federal agency 
 determines that a small business concern is not 
 meeting an applicable increased minimum 
 performance standard modified under clause
            (i) , 
 the small business concern may not apply for 
 additional Phase I awards or Phase II awards 
 until the small business concern has received 
 enough annual receipts from sources other than 
 an SBIR or STTR program to surpass the minimum 
 performance standard established under clause
            (i) .''.

SEC. 502. IMPROVING DIRECT TO PHASE II AUTHORITIES.

 

Section 9
            (cc) of the Small Business Act (15 U.S.C. 638
            (cc) ) is 
amended to read as follows:
 ``
            (cc) Phase Flexibility.--
 ``

    (1) Awarding a phase ii award absent a phase i award.--
 Each agency with an SBIR program may provide to a small 
 business concern an award under Phase II of the SBIR program 
 with respect to a project, without regard to whether the small 
 business concern was provided an award under Phase I of an SBIR 
 program with respect to such project, if the head of the agency 
 determines that the small business concern has completed the 
 determinations described in subsection

    (e)

    (4)
        (A) with respect 
 to such project despite not having been provided a Phase I 
 award.
 ``

    (2) Limitations on awards.--
 ``
        (A) In general.--Except as provided in 
 subparagraph
        (B) , the head of each agency with an SBIR 
 program may award not more than 10 percent of the funds 
 allocated for the SBIR program of the agency in a given 
 fiscal year under the authority of this subsection.
 ``
        (B) National institutes of health and department 
 of defense.--The Director of the National Institutes of 
 Health may award not more than 30 percent of the funds 
 allocated for the SBIR program of the National 
 Institutes of Health in a given fiscal year and the 
 Secretary of Defense may award not more than 30 percent 
 of the funds allocated for the SBIR program of each 
 component in the Department of Defense in a given 
 fiscal year under the authority of this subsection.
 ``
            (C) Limit on eligibility for awards.--An agency 
 may not make an award under this subsection to a small 
 business concern, including its affiliates, spinouts, 
 and subsidiaries, that has received more than 25 Phase 
 II awards.
 ``
            (D) Limit on number of awards.--An agency may 
 make not more than 25 awards under this subsection to a 
 small business concern, including its affiliates, 
 spinouts, and subsidiaries.''.

SEC. 503. IMPROVING SBIR-STTR DATA COLLECTION.

    (a) Additional Data Fields in SBIR Database.--

Section 9

    (k)

    (1) of 
the Small Business Act (15 U.S.C. 638

    (k)

    (1) ) is amended--

    (1) in subparagraph
        (E)
            (iv) , by striking ``and'' at the 
 end;

    (2) in subparagraph
        (F)
            (v) , by striking the period at the 
 end and inserting ``; and''; and

    (3) by adding at the end the following:
 ``
        (G) for each award granted, whether the award is 
 classified or designated as--
 ``
            (i) Phase 1A, under subsection

    (pp) ;
 ``
            (ii) direct to Phase II, under subsection
            (cc) ;
 ``
            (iii) subsequent Phase II, under 
 subsection

    (bb)

    (1) ;
 ``
            (iv) strategic breakthrough award under 
 subsection

    (ff)

    (3) ;
 ``
            (v) Phase III prime contract award; or
 ``
            (vi) Phase III subcontract award.''.

    (b) Improving FPDS Data Tracking.--

    (1) In general.--The Administrator of General Services 
 shall update the Federal Procurement Data System described in 
 

section 1122

    (a)

    (4) of title 41, United States Code, or any 
 successor system, to--
        (A) require reporting on whether an award under the 
 SBIR or STTR program is classified or designated as--
            (i) Phase 1A, under subsection

    (pp) of 
 

section 9 of the Small Business Act (15 U.S.C. 
 638), as amended by this Act;
            (ii) direct to Phase II, under subsection
            (cc) of such section;
            (iii) subsequent Phase II, under subsection

    (bb)

    (1) of such section;
            (iv) a strategic breakthrough award under 
 subsection

    (ff)

    (3) of such section;
            (v) a Phase III prime contract award; or
            (vi) a Phase III subcontract award;
        (B) require reporting on whether a contract is 
 designated as a Phase III contract; and
            (C) allow a Government contracting officer, when 
 recording a Phase II or Phase III contract following on 
 from work done by a small business concern during a 
 Phase I or Phase II award to reference an SBIR or STTR 
 contract identification number for relevant prior SBIR 
 or STTR work done.

    (2) No new funds.--No additional funds are authorized to be 
 appropriated for the purpose of carrying out this subsection.

SEC. 504. STREAMLINING PROGRAM ADMINISTRATION.

 

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended--

    (1) in subsection

    (bb)

    (3) , by inserting ``or another 
 component of the same Federal agency'' after ``another Federal 
 agency'';

    (2) in subsection

    (gg) --
        (A) in the heading, by striking ``Pilot Program'' 
 and inserting ``Commercialization Readiness Program'';
        (B) by striking ``pilot'' each place the term 
 appears;
            (C) by striking paragraph

    (7) ;
            (D) by redesignating paragraph

    (8) as paragraph

    (7) ; and
        (E) by amending paragraph

    (7) , as so redesignated, 
 to read as follows:
 ``

    (7) === Definition. ===
-In this subsection, the term `covered 
 Federal agency'--
 ``
        (A) means a Federal agency participating in the 
 SBIR program or the STTR program; and
 ``
        (B) does not include the Department of 
 Defense.'';

    (3) in subsection

    (hh) --
        (A) by striking ``Funding.--'' and all that follows 
 through ``Federal agencies participating'' and 
 inserting ``Funding.--Federal agencies participating''; 
 and
        (B) by striking paragraph

    (2) ;

    (4) in subsection
            (ii) (2)
        (B) --
        (A) in clause
            (ii) , by adding ``and'' at the end;
        (B) in clause
            (iii) , by striking ``; and'' and 
 inserting a period; and
            (C) by striking clause
            (iv) ;

    (5) in subsection

    (qq)

    (3) , by striking subparagraph
            (I) ;

    (6) in subsection
            (vv) (3) , by striking subparagraph
            (C) ;

    (7) by redesignating subsection

    (yy) as subsection
            (xx) ;

    (8) in subsection
            (xx) , as so redesignated--
        (A) in the subsection heading, by striking 
 ``Pilot'';
        (B) by striking ``STTR Program.--'' and all that 
 follows through ``Not later than'' and inserting ``STTR 
 Program.--Not later than'';
            (C) by striking paragraph

    (2) ; and
            (D) by striking ``pilot'';

    (9) by redesignating subsection

    (zz) as subsection

    (yy) ; 
 and

    (10) in subsection

    (yy) , as so redesignated--
        (A) in the subsection heading, by striking 
 ``Pilot'';
        (B) in paragraph

    (1) --
            (i) in the paragraph heading, by striking 
 ``Pilot'' and inserting ``Program'';
            (ii) in subparagraph
        (B) , by striking 
 ``3.25'' and inserting ``3.50''; and
            (iii) in subparagraph
            (C) , by striking 
 ``0.46'' and inserting ``0.21'';
            (C) by striking paragraph

    (3) ; and
            (D) by striking ``pilot'' each place the term 
 appears.

SEC. 505. EXTENDING SBIR AND STTR AUTHORIZATION.

 

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is amended--

    (1) in subsection
            (m) , by striking ``2025'' and inserting 
 ``2028''; and

    (2) in subsection

    (n)

    (1)
        (A) , by striking ``2025'' and 
 inserting ``2028''.
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