S 4900 — SBIR and STTR Extension Act of 2022

``(F) <<NOTE:

Time period.>> any technology licensing or intellectual property sales to a foreign country of concern, including the People's Republic of China, during the 5-year period preceding submission of the proposal;

``(14) after<<NOTE: reviewing the disclosures of a small business concern under paragraph (13), and if determined appropriate by the head of such Federal agency, request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such small business concern made such disclosures;''.

Review.

Determination.

Records.

Time period.>> after reviewing the disclosures of a small business concern under paragraph (13), and if determined appropriate by the head of such Federal agency, request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such small business concern made such disclosures;''.

``(17) require<<NOTE: each small business concern submitting a proposal or application for a federally funded award to disclose in the proposal or application-- ``(A) the identity of all owners and covered individuals of the small business concern who are a party to any foreign talent recruitment program of any foreign country of concern, including the People's Republic of China;

Requirement.>> require each small business concern submitting a proposal or application for a federally funded award to disclose in the proposal or application-- ``(A) the identity of all owners and covered individuals of the small business concern who are a party to any foreign talent recruitment program of any foreign country of concern, including the People's Republic of China;

``(F) any<<NOTE: technology licensing or intellectual property sales to a foreign country of concern, including the People's Republic of China, during the 5- year period preceding submission of the proposal;

andTime ``(G)period.>> any foreigntechnology businesslicensing entity,or offshoreintellectual entity,property orsales entityto outsidea foreign country of concern, including the UnitedPeople's StatesRepublic relatedof toChina, during the small5-year businessperiod concern;preceding submission of the proposal;

``(18) after reviewing the disclosures of a small business concern under paragraph (17), and if[[Page determined136 appropriateSTAT. by the head of such Federal agency, request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such small business concern made such disclosures;''.

2185]] ``(G) any foreign business entity, offshore entity, or entity outside the United States related to the small business concern;

``(18) <<NOTE:

Review.

Determination.

Records.

Time period.>> after reviewing the disclosures of a small business concern under paragraph (17), and if determined appropriate by the head of such Federal agency, request such small business concern to provide true copies of any contractual or financial obligation or other agreement specific to a business arrangement, or joint-venture like arrangement with an enterprise owned by a foreign state or any foreign entity in effect during the 5-year period preceding submission of the proposal with respect to which such small business concern made such disclosures;''.

``(15) not<<NOTE: make an award under the SBIR program of the Federal agency to a small business concern if the head of the Federal agency determines that-- ``(A) the small business concern submitting the proposal or application-- ``(i) has an owner or covered individual that is party to a malign foreign talent recruitment program;

Determination.>> not make an award under the SBIR program of the Federal agency to a small business concern if the head of the Federal agency determines that-- ``(A) <<NOTE:

China.>> the small business concern submitting the proposal or application-- ``(i) has an owner or covered individual that is party to a malign foreign talent recruitment program;

``(19) not<<NOTE: make an award under the STTR program of the Federal agency to a small business concern if the head of the Federal agency determines that-- ``(A) the small business concern submitting the proposal or application-- ``(i) has an owner or covered individual that is party to a malign foreign talent recruitment program;

Determination.>> not make an award under the STTR program of the Federal agency to a small business concern if the head of the Federal agency determines that-- ``(A) <<NOTE:

China.>> the small business concern submitting the proposal or application-- ``(i) has an owner or covered individual that is party to a malign foreign talent recruitment program;

or ``(iii)[[Page has136 anSTAT. owner or covered individual that has a foreign affiliation with a research institution located in the People's Republic of China or another foreign country of concern;

2186]] ``(iii) has an owner or covered individual that has a foreign affiliation with a research institution located in the People's Republic of China or another foreign country of concern;

(a) SBIR.--Section<<NOTE: 9(g) of the Small Business Act (15 U.S.C.

Requirements.>> SBIR.--Section 9(g) of the Small Business Act (15 U.S.C.

``(16) require<<NOTE: a small business concern receiving an award under its SBIR program to repay all amounts received from the Federal agency under the award if-- ``(A) the small business concern makes a material misstatement that the Federal agency determines poses a risk to national security;

Repayment.>> require a small business concern receiving an award under its SBIR program to repay all amounts received from the Federal agency under the award if-- ``(A) the small business concern makes a material misstatement that the Federal agency determines poses a risk to national security;

(b) STTR.--Section<<NOTE: 9(o) of the Small Business Act (15 U.S.C.

Requirements.>> STTR.--Section 9(o) of the Small Business Act (15 U.S.C.

``(20) require<<NOTE: a small business concern receiving an award under its STTR program to repay all amounts received from the Federal agency under the award if-- ``(A) the small business concern makes a material misstatement that the Federal agency determines poses a risk to national security;

Repayment.>> require a small business concern receiving an award under its STTR program to repay all amounts received from the Federal agency under the award if-- ``(A) the small business concern makes a material misstatement that the Federal agency determines poses a risk to national security;

and ``(21) require a small business concern receiving an award under its STTR program to regularly report to the Federal agency and the Administration throughout the duration of the award on-- ``(A)[[Page any136 changeSTAT. to a disclosure required under subparagraphs (A) through (G) of paragraph (17);

2187]] ``(A) any change to a disclosure required under subparagraphs (A) through (G) of paragraph (17);

(c) Paperwork<<NOTE: Reduction Act.--Chapter 35 of title 44, United States Code (commonly known as the ``Paperwork Reduction Act''), shall not apply to the implementation of paragraphs (16) and (17) of subsection (g) or paragraphs (20) and (21) of subsection (o) of section 9 of the Small Business Act (15 U.S.C.

15 USC 638 note.>> Paperwork Reduction Act.--Chapter 35 of title 44, United States Code (commonly known as the ``Paperwork Reduction Act''), shall not apply to the implementation of paragraphs (16) and (17) of subsection (g) or paragraphs (20) and (21) of subsection (o) of section 9 of the Small Business Act (15 U.S.C.

(b) Requirement.--<<NOTE: (1) In general.--Except as provided in paragraph (2), not later than 180 days after the date of enactment of this Act, the head of each covered agency shall submit a report assessing the adversarial military and foreign influences in the SBIR and STTR programs at the covered agency to-- (A) the Committee on Armed Services, the Committee on Small Business and Entrepreneurship, and the Committee on Commerce, Science, and Transportation of the Senate;

Assessments.>> Requirement.-- (1) In general.--Except as provided in paragraph (2), not later than 180 days after the date of enactment of this Act, the head of each covered agency shall submit a report assessing the adversarial military and foreign influences in the SBIR and STTR programs at the covered agency to-- (A) the Committee on Armed Services, the Committee on Small Business and Entrepreneurship, and the Committee on Commerce, Science, and Transportation of the Senate;

(c) Contents.--Each<<NOTE: report submitted by a covered agency under subsection (b) shall include an analysis of-- (1) the national security and research and integrity risks of the SBIR and STTR programs of the covered agency;

Analyses.>> Contents.--Each report submitted by a covered agency under subsection (b) shall include an analysis of-- (1) the national security and research and integrity risks of the SBIR and STTR programs of the covered agency;

(e) Independent<<NOTE: Entity Contracting.--The head of each covered agency, in coordination with the heads of other Federal agencies, as appropriate, may enter into a contract with an independent entity to prepare a report required under subsection (b).

SEC.Coordination.>> Independent Entity Contracting.--The head of each covered agency, in coordination with the heads of other Federal agencies, as appropriate, may enter into a contract with an independent entity to prepare a report required under subsection (b).

[[Page 136 STAT.

2188]] SEC.

``(ww) Program on Innovation Open Topics.-- ``(1) Establishment.--Not<<NOTE: later than 180 days after the date of enactment of this subsection, the Secretary of Defense shall establish innovation open topic activities using the SBIR and STTR programs of the Department of Defense in order to-- ``(A) increase the transition of commercial technology to the Department of Defense;

Deadline.>> Establishment.--Not later than days after the date of enactment of this subsection, the Secretary of Defense shall establish innovation open topic activities using the SBIR and STTR programs of the Department of Defense in order to-- ``(A) increase the transition of commercial technology to the Department of Defense;

``(2) Frequency.--The<<NOTE: Secretary of Defense shall conduct not less than 1 open topic announcement at each component of the Department of Defense per fiscal year.

``(3)Time Briefing.--Notperiod.>> laterFrequency.--The than 180 days after the date of enactment of this subsection, the Secretary of Defense shall provideconduct anot briefingless onthan the1 establishmentopen oftopic theannouncement programat requiredeach undercomponent paragraphof (1) to-- ``(A) the CommitteeDepartment onof ArmedDefense Servicesper andfiscal theyear. Committee on Small Business and Entrepreneurship of the Senate;

``(3) <<NOTE:

Deadline.>> Briefing.--Not later than 180 days after the date of enactment of this subsection, the Secretary of Defense shall provide a briefing on the establishment of the program required under paragraph (1) to-- ``(A) the Committee on Armed Services and the Committee on Small Business and Entrepreneurship of the Senate;

(b) GAO<<NOTE: Report.--Not later than 1 year after the date of enactment of this Act, and annually thereafter for 3 years, the Comptroller General of the United States shall submit to Congress and issue a publicly available report comparing open topics and conventional topics under the SBIR and STTR programs that includes, to the extent practicable-- (1) an assessment of the percentage of small business concerns that progress from Phase I to Phase II awards, then to Phase III awards;

Time period.

Public information.>> GAO Report.--Not later than 1 year after the date of enactment of this Act, and annually thereafter for 3 years, the Comptroller General of the United States shall submit to Congress and issue a publicly available report comparing open topics and conventional topics under the SBIR and STTR programs that includes, to the extent practicable-- (1) <<NOTE:

Assessment.>> an assessment of the percentage of small business concerns that progress from Phase I to Phase II awards, then to Phase III awards;

(3)[[Page the136 numberSTAT. of awards under the SBIR and STTR programs made to non-traditional small business concerns, including those owned by women, minorities, and veterans;

2189]] (3) the number of awards under the SBIR and STTR programs made to non-traditional small business concerns, including those owned by women, minorities, and veterans;

(6) the<<NOTE: ratio, and an assessment, of the amount of funding allocated towards open topics as compared to conventional topics at each Federal agency that is required to establish an SBIR or STTR program and offers open topics;

Assessment.>> the ratio, and an assessment, of the amount of funding allocated towards open topics as compared to conventional topics at each Federal agency that is required to establish an SBIR or STTR program and offers open topics;

``(3) Increased minimum performance standards for experienced firms.-- ``(A) Progress<<NOTE: to phase ii success.-- ``(i) In general.--With respect to a small business concern that received or receives more than 50 Phase I awards during a covered period, each minimum performance standard established under paragraph (1)(A)(ii) shall be doubled for such covered period.

``(ii)Time Consequenceperiods.>> ofProgress failure to meetphase standard.--Ifii thesuccess.-- head``(i) ofIn ageneral.--With Federalrespect agencyto determines that a small business concern that received aor Phasereceives I award from the Federal agency is not meeting an applicable increased minimum performance standard modified under clause (i), the small business concern may not receive more than 2050 total Phase I awards andduring Phasea IIcovered awardsperiod, under subsection (cc) from each Federalminimum agencyperformance duringstandard theestablished 1-yearunder periodparagraph beginning(1)(A)(ii) onshall thebe datedoubled onfor which such determinationcovered isperiod. made.

``(ii) Consequence of failure to meet standard.-- <<NOTE:

Determination.

Effective date.>> If the head of a Federal agency determines that a small business concern that received a Phase I award from the Federal agency is not meeting an applicable increased minimum performance standard [[Page 136 STAT.

2190]] modified under clause (i), the small business concern may not receive more than 20 total Phase I awards and Phase II awards under subsection (cc) from each Federal agency during the 1-year period beginning on the date on which such determination is made.

``(B) Progress<<NOTE: to phase iii success.-- ``(i) In general.--Each minimum performance standard established under paragraph (2)(A)(ii) shall-- ``(I) with respect to a small business concern that received or receives more than 50 Phase II awards during a covered period, require an average of $250,000 of aggregate sales and investments per Phase II award received during such covered period;

Time periods.>> Progress to phase iii success.-- ``(i) <<NOTE:

Requirements.>> In general.-- Each minimum performance standard established under paragraph (2)(A)(ii) shall-- ``(I) with respect to a small business concern that received or receives more than 50 Phase II awards during a covered period, require an average of $250,000 of aggregate sales and investments per Phase II award received during such covered period;

``(ii) Consequence of failure to meet standard.--Ifstandard.-- the<<NOTE: head of a Federal agency determines that a small business concern that received a Phase I award from the agency is not meeting an applicable increased minimum performance standard modified under clause (i), the small business concern may not receive more than 20 total Phase I awards and Phase II awards under subsection (cc) from each agency during the 1-year period beginning on the date on which such determination is made.

Determination.

Effective date.>> If the head of a Federal agency determines that a small business concern that received a Phase I award from the agency is not meeting an applicable increased minimum performance standard modified under clause (i), the small business concern may not receive more than 20 total Phase I awards and Phase II awards under subsection (cc) from each agency during the 1-year period beginning on the date on which such determination is made.

and ``(dd) that was or is received during the 5 fiscal years immediately preceding the fiscal year in which the small business concern uses the[[Page sale136 toSTAT. meet the increased minimum performance standard.

2191]] the sale to meet the increased minimum performance standard.

``(iii) Agency request and congressional notification.--Notnotification.-- later<<NOTE: than 15 days before the release of a solicitation including a topic for which a senior official of a Federal agency is requesting a waiver under clause (i), the senior official shall submit to the Administrator, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate a request for the waiver.

``(iv)Deadline.>> AdministratorNot determinationlater andthan congressionaldays notification.--Notbefore laterthe thanrelease 15of daysa aftersolicitation receivingincluding a requesttopic for which a waiversenior underofficial clauseof (i),a theFederal Administratoragency shallis makerequesting a determinationwaiver withunder respectclause to(i), the request and notify the senior official atshall thesubmit Federalto agency that made the request,Administrator, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate ofa request for the determination.waiver.

``(iv) Administrator determination and congressional notification.-- <<NOTE:

Deadline.>> Not later than 15 days after receiving a request for a waiver under clause (i), the Administrator shall make a determination with respect to the request and notify the senior official at the Federal agency that made the request, the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives, and the Committee on Small Business and Entrepreneurship of the Senate of the determination.

``(I) Covered small business concern.--The term `covered small business concern' means a small business concern that is subject to the consequences under subparagraph (A)(ii) or (B)(ii) pursuant to a determination by the head of a Federal agency that such small business concern did not[[Page meet136 anSTAT. increased minimum performance standard that was applicable to such small business concern.

``(II)2192]] Seniornot official.--Themeet term `senior official' means an individualincreased appointedminimum toperformance astandard position in a Federal agency that iswas classifiedapplicable aboveto GS-15such pursuantsmall sectionbusiness 5108concern. of title 5, United States Code, or any equivalent position, as determined by the Administrator.

``(F)``(II) Reporting.--<<NOTE: ``(i) In general.--Not later than July 1, 2023, and annually thereafter, the Administrator shall submit to Congress a list of the small business concerns that did not meet-- ``(I) an applicable minimum performance standard established under paragraph (1)(A)(ii) or (2)(A)(ii);

Determination.>> Senior official.--The term `senior official' means an individual appointed to a position in a Federal agency that is classified above GS-15 pursuant section 5108 of title 5, United States Code, or any equivalent position, as determined by the Administrator.

``(F) Reporting.-- ``(i) <<NOTE:

Lists.>> In general.--Not later than July 1, 2023, and annually thereafter, the Administrator shall submit to Congress a list of the small business concerns that did not meet-- ``(I) an applicable minimum performance standard established under paragraph (1)(A)(ii) or (2)(A)(ii);

``(G) Implementation.--Not<<NOTE: later than April 1, 2023, the Administration shall implement the increased minimum performance standards under this paragraph.

Deadline.>> Implementation.--Not later than April 1, 2023, the Administration shall implement the increased minimum performance standards under this paragraph.

``(6) Inspector<<NOTE: general audit.--Not later than 1 year after the date on which the Administrator implements the increased minimum performance standards under paragraph (3), and periodically thereafter, the Inspector General of the Administration shall-- ``(A) conduct an audit on whether the small business concerns subject to increased minimum performance standards under paragraph (3)(B) verified-- ``(i) the sales by and investments in the small business concerns-- ``(I) during the 5 fiscal years immediately preceding the fiscal year in which the small business concern used such sales and investments to meet an applicable increased performance standard;

Deadline.>> Inspector general audit.--Not later than 1 year after the date on which the Administrator implements the increased minimum performance standards under paragraph (3), and periodically thereafter, the Inspector General of the Administration shall-- [[Page 136 STAT.

2193]] ``(A) conduct an audit on whether the small business concerns subject to increased minimum performance standards under paragraph (3)(B) verified-- ``(i) the sales by and investments in the small business concerns-- ``(I) <<NOTE:

Time period.>> during the 5 fiscal years immediately preceding the fiscal year in which the small business concern used such sales and investments to meet an applicable increased performance standard;

and ``(II) consistent<<NOTE: with the requirements of the Administrator as in effect on September 30, 2022, or any successor requirements;

Effective date.>> consistent with the requirements of the Administrator as in effect on September 30, 2022, or any successor requirements;

``(B) assess<<NOTE: the self-certification requirements for the minimum performance standards established under paragraph (2)(A)(ii) and the increased minimum performance standards under paragraph (3)(B);

andAssessment.>> ``(C)assess submit to the Committeeself- oncertification Smallrequirements Businessfor and Entrepreneurship of the Senateminimum andperformance thestandards Committeeestablished onunder Smallparagraph Business(2)(A)(ii) and the Committeeincreased onminimum Science,performance Space,standards and Technology of the House of Representatives a report on the audit conducted under subparagraphparagraph (A)(3)(B); and the assessment conducted under subparagraph (B).

and ``(C) <<NOTE:

Reports.>> submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a report on the audit conducted under subparagraph (A) and the assessment conducted under subparagraph (B).

``(xx) Additional Provisions Relating to Solicitation Topics.-- ``(1) In<<NOTE: general.--A Federal agency required to establish an SBIR or STTR program shall implement a multi-level review and approval process within the Federal agency for solicitation topics to ensure adequate competition and that no private individual or entity is shaping the requirements for eligibility for the solicitation topic after the selection of the solicitation topic, except that the Federal agency may amend the requirements to clarify the solicitation topic.

Processes.>> In general.--A Federal agency required to establish an SBIR or STTR program shall implement a multi-level review [[Page 136 STAT.

2194]] and approval process within the Federal agency for solicitation topics to ensure adequate competition and that no private individual or entity is shaping the requirements for eligibility for the solicitation topic after the selection of the solicitation topic, except that the Federal agency may amend the requirements to clarify the solicitation topic.

Not later<<NOTE: than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a report, which shall be made publicly available, on small business concerns that are awarded not less than 50 Phase II awards under the SBIR or STTR programs during the consecutive period of 10 fiscal years preceding the most recent 2 fiscal years, including, to the extent practicable, an analysis of-- (1) the impact of the small business concerns on the SBIR and STTR programs;

Deadline.

Reports.

Public information.

Time periods.

Analyses.>> later than 18 months after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a report, which shall be made publicly available, on small business concerns that are awarded not less than 50 Phase II awards under the SBIR or STTR programs during the consecutive period of fiscal years preceding the most recent 2 fiscal years, including, to the extent practicable, an analysis of-- (1) the impact of the small business concerns on the SBIR and STTR programs;

(5) an<<NOTE: evaluation and study of varying levels of award caps and lifetime program earning caps;

(6)Evaluation.>> an assessmentevaluation ofand thestudy increased minimum performance standards under paragraph (3) of sectionvarying 9(qq)levels of theaward Smallcaps Businessand Actlifetime (15program U.S.C.earning caps;

(6) <<NOTE:

Assessment.>> an assessment of the increased minimum performance standards under paragraph (3) of section 9(qq) of the Small Business Act (15 U.S.C.

and (7) recommendations<<NOTE: on whether alternative minimum performance standards under section 9(qq) of the Small Business Act (15 U.S.C.

Recommenda- tions.>> recommendations on whether alternative minimum performance standards under section 9(qq) of the Small Business Act (15 U.S.C.

Not later<<NOTE: than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a report evaluating, to the extent practicable, the following:

(1)Evaluations.>> Thelater extentthan 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to whichthe SBIRCommittee awardeeson Small Business and STTREntrepreneurship awardeesof arethe inSenate complianceand withthe Committee on Small Business and the FederalCommittee Fundingon AccountabilityScience, Space, and TransparencyTechnology Actof (31the U.S.C.House of Representatives a report evaluating, to the extent practicable, the following:

[[Page 136 STAT.

2195]] (1) <<NOTE:

Compliance.>> The extent to which SBIR awardees and STTR awardees are in compliance with the Federal Funding Accountability and Transparency Act (31 U.S.C.

(5) An<<NOTE: analysis of whether the use of subcontracts by an SBIR awardee or an STTR awardee is consistent with the purposes of section 9 of the Small Business Act (15 U.S.C.

Analysis.>> An analysis of whether the use of subcontracts by an SBIR awardee or an STTR awardee is consistent with the purposes of section 9 of the Small Business Act (15 U.S.C.

PassedApproved the Senate September 20,30, 2022.

Attest:LEGISLATIVE HISTORY--S.

Secretary.4900:

117th--------------------------------------------------------------------------- CONGRESSCONGRESSIONAL 2dRECORD, SessionVol. S.

4900168 _______________________________________________________________________(2022): AN ACT To reauthorize the SBIR and STTR programs and pilot programs, and for other purposes.

Sept.

20, considered and passed Senate.

Sept.

28, 29, considered and passed House.

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