HR 8958 — NASA Reauthorization Act of 2024

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
 AUTHORIZATION ACT OF 2010

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 TITLE V--CONTINUATION, SUPPORT,
 AND EVOLUTION OF THE INTER-
 NATIONAL SPACE STATION

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SEC. 502. MAXIMUM UTILIZATION OF THE INTERNATIONAL SPACE STATION.

 (a) In General.--With assembly of the ISS complete, NASA 
shall [take steps to] maximize the productivity and use of the 
ISS with respect to scientific and technological research and 
development, advancement of space exploration, and 
international collaboration.
 (b) NASA Actions.--In carrying out subsection (a), NASA 
shall, at a minimum, undertake the following:
 (1) Innovative use of u.s. segment.--The United 
 States segment of the ISS, which has been designated as 
 a National Laboratory, shall be developed, managed and 
 utilized in a manner that enables the effective and 
 innovative use of such facility, as provided in section 
 504.
 (2) International cooperation.--The ISS shall 
 continue to be utilized as a key component of 
 international efforts to build missions and 
 capabilities that further the development of a human 
 presence beyond near-Earth space and advance United 
 States security and economic goals. The Administrator 
 shall actively seek ways to encourage and enable the 
 use of ISS capabilities to support these efforts.
 (3) Domestic collaboration.--The operations, 
 management, and utilization of the ISS shall be 
 conducted in a manner that provides opportunities for 
 collaboration with other research programs and 
 objectives of the United States Government in 
 cooperation with commercial suppliers, users, and 
 developers.

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 TITLE VII--EARTH SCIENCE

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SEC. 702. INTERAGENCY COLLABORATION IMPLEMENTATION APPROACH.

 (a) In general.--The Director of OSTP shall establish a 
mechanism to ensure greater coordination of the research, 
operations, and activities relating to civilian Earth 
observation of those Agencies, including NASA, that have active 
programs that either contribute directly or indirectly to these 
areas. This mechanism should include the development of a 
strategic implementation plan that is updated at least every 3 
years, and includes a process for external independent advisory 
input. This plan should include a description of the 
responsibilities of the various Agency roles in Earth 
observations, recommended cost-sharing and procurement 
arrangements between Agencies and other entities, including 
international arrangements, and a plan for ensuring the 
provision of sustained, long term space-based climate 
observations. The Director shall provide a report to Congress 
within 90 days after the date of enactment of this Act on the 
implementation plan for this mechanism.
 (b) Considerations.--In updating the civil Earth observation 
strategic implementation plan pursuant to subsection (a), the 
Director of the Office of Science and Technology Policy shall 
consider commercial Earth observation data, as appropriate, 
that can be purchased or accessed by the Federal Government to 
meet Earth observation requirements.

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 TITLE VIII--SPACE SCIENCE

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SEC. 808. NEAR-EARTH OBJECT SURVEY AND POLICY WITH RESPECT TO
 THREATS POSED.

 (a) Policy Reaffirmation.--Congress reaffirms the policy set 
forth in section 102(g) of the National Aeronautics and Space 
Act of 1958 (42 U.S.C. 2451(g)) relating to surveying near-
Earth asteroids and comets.
 (b) Implementation.--The Director of the OSTP shall 
[implement, before September 30, 2012,], in coordination with 
the NASA Administrator, maintain and regularly update a policy 
for notifying Federal agencies and relevant emergency response 
institutions of an impending near-Earth object threat if near-
term public safety is at risk, and assign a Federal agency or 
agencies to be responsible for protecting the United States and 
working with the international community on such threats.

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 SMALL BUSINESS ACT

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 Sec. 9. (a) 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) It shall be the duty of the Administration, and it is 
hereby empowered--
 (1) to assist small-business concerns to obtain 
 Government contracts for research and development;
 (2) to assist small-business concerns to obtain the 
 benefits of research and development performed under 
 Government contracts or at Government expense;
 (3) to provide technical assistance to small-business 
 concerns to accomplish the purposes of this section;
 (4) to develop and maintain a source file and an 
 information program to assure each qualified and 
 interested small business concern 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 business' opportunities to respond to 
 solicitations;
 (6) to independently survey and monitor the operation 
 of SBIR and STTR programs within participating Federal 
 agencies;
 (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--
 (A) the data on output and outcomes collected 
 pursuant to subsections (g)(8) and (o)(9);
 (B) the number of proposals received from, 
 and the number and total amount of awards to, 
 HUBZone small business concerns and firms with 
 venture capital, hedge fund, or private equity 
 firm investment (including those majority-owned 
 by multiple venture capital operating 
 companies, hedge funds, or private equity 
 firms) under each of the SBIR and STTR 
 programs;
 (C) a description of the extent to which each 
 Federal agency is increasing outreach and 
 awards to firms owned and controlled by women 
 or by socially or economically disadvantaged 
 individuals under each of the SBIR and STTR 
 programs;
 (D) general information about the 
 implementation of, and compliance with the 
 allocation of funds required under, subsection 
 (dd) for firms owned in majority part by 
 venture capital operating companies, hedge 
 funds, or private equity firms and 
 participating in the SBIR program;
 (E) a detailed description of appeals of 
 Phase III awards and notices of noncompliance 
 with the SBIR Policy Directive and the STTR 
 Policy Directive filed by the Administrator 
 with Federal agencies;
 (F) an accounting of funds, initiatives, and 
 outcomes under the Commercialization Readiness 
 Program;
 (G) a descriptionof the extent to which 
 Federal agencies are providing in a timely 
 manner information needed to maintain the 
 database described in subsection (k);
 (H) with respect to a Federal agency to which 
 subsection (f)(1) or (n)(1) applies, whether 
 the Federal agency has complied with the 
 applicable subsection for the year covered by 
 the report;
 (I) the number of applications submitted to 
 each Federal agency participating in the SBIR 
 or STTR program in innovation open topics as 
 compared to conventional topics, and how many 
 small business concerns receive funding from 
 open topics compared to conventional topics;
 (J) the total number and dollar amount, and 
 average size, of awards made by each Federal 
 agency participating in the SBIR or STTR 
 program, by phase, from--
 (i) open topics; and
 (ii) conventional topics;
 (K) the minimum performance standards 
 established under subsection (qq), including 
 any applicable modifications under paragraph 
 (3) of such subsection, and the number of small 
 business concerns that did not meet those 
 minimum performance standards, provided that 
 the Administrator does not publish any 
 personally identifiable information, the 
 identity of each such small business concern, 
 or any otherwise sensitive information; and
 (L) the aggregate number and dollar amount of 
 SBIR and STTR awards made pursuant to waivers 
 under subsection (qq)(3)(E), provided that the 
 Administrator does not publish any personally 
 identifiable information, the identity of each 
 such small business concern, or any otherwise 
 sensitive information;
 (8) to provide for and fully implement the tenets of 
 Executive Order No. 13329 (Encouraging Innovation in 
 Manufacturing);
 (9) to coordinate the implementation of electronic 
 databases at each of the Federal agencies participating 
 in the SBIR program or the STTR program, including the 
 technical ability of the participating agencies to 
 electronically share data; and
 (10) to consult, where appropriate, with personnel 
 from the relevant Federal agency to assist small 
 business concerns participating in a SBIR or STTR 
 program with commercializing research developed under 
 such a program before such small business concern is 
 awarded a contract from such Federal agency.
 (c) 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)(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 point 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. 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) 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 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, 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;
 (2) the term ``Federal agency'' means an executive 
 agency as defined in section 105 of title 5, United 
 States Code, 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, which shall not include 
 any invitation, pre-screening, or pre-selection 
 process for eligibility for Phase II, that will 
 further develop proposals which meet particular 
 program needs, in which awards shall be made 
 based on the scientific and technical merit and 
 feasibility of the proposals, as evidenced by 
 the first phase, considering, among other 
 things, the proposal's commercial potential, as 
 evidenced by--
 (i) the small business concern's 
 record of successfully commercializing 
 SBIR or other research;
 (ii) the existence of second phase 
 funding commitments from private sector 
 or non-SBIR funding sources;
 (iii) the existence of third phase, 
 follow-on commitments for the subject 
 of the research; and
 (iv) the presence of other indicators 
 of the commercial potential of the 
 idea; and
 (C) where appropriate, a third phase for work 
 that derives from, extends, or completes 
 efforts made under prior funding agreements 
 under the SBIR program--
 (i) in which commercial applications 
 of SBIR-funded research or research and 
 development are funded by non-Federal 
 sources of capital or, for products or 
 services intended for use by the 
 Federal Government, by follow-on non-
 SBIR Federal funding awards; or
 (ii) for which awards from non-SBIR 
 Federal funding sources are used for 
 the continuation of research or 
 research and development that has been 
 competitively selected using peer 
 review or merit-based selection 
 procedures;
 (5) the term ``research'' or ``research and 
 development'' means any activity which is (A) a 
 systematic, intensive study directed toward greater 
 knowledge or understanding of the subject studied; (B) 
 a systematic study directed specifically toward 
 applying new knowledge to meet a recognized need; or 
 (C) a systematic application of knowledge toward the 
 production of useful materials, devices, 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, which shall not include 
 any invitation, pre-screening, or pre-selection 
 process for eligibility for Phase II, that will 
 further develop proposals that meet particular 
 program needs, in which awards shall be made 
 based on the scientific, technical, and 
 commercial merit and feasibility of the idea, 
 as evidenced by the first phase and by other 
 relevant information; and
 (C) where appropriate, a third phase for work 
 that derives from, extends, or completes 
 efforts made under prior funding agreements 
 under the STTR program--
 (i) in which commercial applications 
 of STTR-funded research or research and 
 development are funded by non-Federal 
 sources of capital or, for products or 
 services intended for use by the 
 Federal Government, by follow-on non-
 STTR Federal funding awards; and
 (ii) for which awards from non-STTR 
 Federal funding sources are used for 
 the continuation of research or 
 research and development that has been 
 competitively selected using peer 
 review or scientific review criteria;
 (7) the term ``cooperative research and development'' 
 means research or research and development conducted 
 jointly by a small business concern 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;
 (8) the term ``research institution'' means a 
 nonprofit institution, as defined in section 4(5) of 
 the Stevenson-Wydler Technology Innovation Act of 1980, 
 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 35(c)(1) of the Office of Federal 
 Procurement Policy Act (or any successor regulation 
 thereto);
 (9) the term ``commercial applications'' shall not be 
 construed to exclude testing and evaluation of 
 products, services, or technologies for use in 
 technical or weapons systems, and further, awards for 
 testing and evaluation of products, services, or 
 technologies for use in technical or weapons systems 
 may be made in either Phase II or Phase III of the 
 Small Business Innovation Research Program and of the 
 Small Business Technology Transfer Program, as defined 
 in this subsection;
 (10) the term ``commercialization'' means--
 (A) the process of developing products, 
 processes, technologies, or services; and
 (B) the production and delivery (whether by 
 the originating party or by others) of 
 products, processes, technologies, or services 
 for sale to or use by the Federal Government or 
 commercial markets;
 (11) the term ``Phase I'' means--
 (A) with respect to the SBIR program, the 
 first phase described in paragraph (4)(A); and
 (B) with respect to the STTR program, the 
 first phase described in paragraph (6)(A);
 (12) the term ``Phase II'' means--
 (A) with respect to the SBIR program, the 
 second phase described in paragraph (4)(B); and
 (B) with respect to the STTR program, the 
 second phase described in paragraph (6)(B);
 (13) the term ``Phase III'' means--
 (A) with respect to the SBIR program, the 
 third phase described in paragraph (4)(C); and
 (B) with respect to the STTR program, the 
 third phase described in paragraph (6)(C);
 (14) the term ``senior procurement executive'' means 
 an official designated under section 1702(c) of title 
 41, United States Code, as the senior procurement 
 executive of a Federal agency participating in a SBIR 
 or STTR program;
 (15) the term ``covered individual'' means an 
 individual who--
 (A) contributes in a substantive, meaningful 
 way to the scientific development or execution 
 of a research and development project proposed 
 to be carried out with a research and 
 development award from a Federal research 
 agency; and
 (B) is designated as a covered individual by 
 the Federal research agency concerned;
 (16) the term ``foreign affiliation'' means a funded 
 or unfunded academic, professional, or institutional 
 appointment or position with a foreign government or 
 government-owned entity, whether full-time, part-time, 
 or voluntary (including adjunct, visiting, or 
 honorary);
 (17) the term ``foreign country of concern'' means 
 the People's Republic of China, the Democratic People's 
 Republic of Korea, the Russian Federation, the Islamic 
 Republic of Iran, or any other country determined to be 
 a country of concern by the Secretary of State;
 (18) the term ``malign foreign talent recruitment 
 program'' has the meaning given such term in section 
 10638 of the Research and Development, Competition, and 
 Innovation Act (division B of Public Law 117-167); and
 (19) the term ``federally funded award'' means a 
 Phase I, Phase II (including a Phase II award under 
 subsection (cc)), or Phase III SBIR or STTR award made 
 using a funding agreement.
 (f) Federal Agency Expenditures for the SBIR Program.--
 (1) Required expenditure amounts.--Except as provided 
 in paragraph (2)(B), 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;
 (C) not less than 2.5 percent of such budget 
 in each of fiscal years 1997 through 2011;
 (D) not less than 2.6 percent of such budget 
 in fiscal year 2012;
 (E) not less than 2.7 percent of such budget 
 in fiscal year 2013;
 (F) not less than 2.8 percent of such budget 
 in fiscal year 2014;
 (G) not less than 2.9 percent of such budget 
 in fiscal year 2015;
 (H) not less than 3.0 percent of such budget 
 in fiscal year 2016; and
 (I) not less than 3.2 percent of such budget 
 in fiscal year 2017 and each fiscal year 
 thereafter,
 specifically in connection with SBIR programs which 
 meet the requirements of this section, policy 
 directives, and regulations issued under this section.
 (2) Limitations.--A Federal agency 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).
 (4) Rule of construction.--Nothing in this subsection 
 may be construed to prohibit a Federal agency from 
 expending with small business concerns an amount of the 
 extramural budget for research or research and 
 development of the agency that exceeds the amount 
 required under paragraph (1).
 (g) Each Federal agency required by subsection (f) to 
establish a small business innovation research program shall, 
in accordance with this Act 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 603 of the National Science and 
 Technology Policy, Organization, and Priorities 
 Act of 1976, and in subsequent reports issued 
 under that authority; or
 (B) the Secretary of Defense, in the 1992 
 report issued in accordance with section 2522 
 of title 10, United States Code, and in 
 subsequent reports issued under that authority;
 (4)(A) unilaterally receive and evaluate proposals 
 resulting from SBIR proposals; and
 (B) make a final decision on each proposal submitted 
 under the SBIR program--
 (i) not later than 1 year after the date on 
 which the applicable solicitation closes, if 
 with respect to the National Institutes of 
 Health or the National Science Foundation, or 
 90 days after the date on which the applicable 
 solicitation closes, if with respect to any 
 other participating agency; or
 (ii) if the Administrator authorizes an 
 extension with respect to a solicitation, not 
 later than 90 days after the date that would 
 otherwise be applicable to the agency under 
 clause (i);
 (5) subject to subsection (l), unilaterally select 
 awardees for the 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) collect annually, and maintain in a common format 
 in accordance with the simplified reporting 
 requirements under subsection (v), such information 
 from awardees as is necessary to assess the SBIR 
 program, including information necessary to maintain 
 the database described in subsection (k), including--
 (A) whether an awardee--
 (i) has venture capital, hedge fund, 
 or private equity firm investment or is 
 majority-owned by multiple venture 
 capital operating companies, hedge 
 funds, or private equity firms and, if 
 so--
 (I) the amount of venture 
 capital, hedge fund, or private 
 equity firm investment that the 
 awardee has received as of the 
 date of the award; and
 (II) the amount of additional 
 capital that the awardee has 
 invested in the SBIR 
 technology;
 (ii) has an investor that--
 (I) is an individual who is 
 not a citizen of the United 
 States or a lawful permanent 
 resident of the United States 
 and, if so, the name of any 
 such individual; or
 (II) is a person that is not 
 an individual and is not 
 organized under the laws of a 
 State or the United States and, 
 if so, the name of any such 
 person;
 (iii) is owned by a woman or has a 
 woman as a principal investigator;
 (iv) is owned by a socially or 
 economically disadvantaged individual 
 or has a socially or economically 
 disadvantaged individual as a principal 
 investigator;
 (v) is a faculty member or a student 
 of an institution of higher education, 
 as that term is defined in section 101 
 of the Higher Education Act of 1965 (20 
 U.S.C. 1001); or
 (vi) is located in a State described 
 in subsection (u)(3);
 (B) a justification statement from the 
 agency, if an awardee receives an award in an 
 amount that is more than the award guidelines 
 under this section; and
 (C) data with respect to the Federal and 
 State Technology Partnership Program (FAST 
 Program);
 (9) make an annual report on the SBIR program to the 
 Small Business Administration and the Office of Science 
 and Technology Policy;
 (10) include, as part of its annual performance plan 
 as required by subsections (a) and (b) of section 1115 
 of title 31, United States Code, a section on its SBIR 
 program, which section shall describe whether or not 
 the Federal agency complied with the requirements of 
 subsection (f) for the year covered by that plan and 
 include a justification for failure to comply (if 
 applicable),, and shall submit such section to the 
 Committee on Small Business of the Senate, and the 
 Committee on Science and the Committee on Small 
 Business of the House of Representatives;
 (11) provide for and fully implement the tenets of 
 Executive Order No. 13329 (Encouraging Innovation in 
 Manufacturing);
 (12) provide timely notice to the Administrator of 
 any case or controversy before any Federal judicial or 
 administrative tribunal concerning the SBIR program of 
 the Federal agency;
 (13) 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;
 (B) the existence of any joint venture or 
 subsidiary of the small business concern that 
 is based in, funded by, or has a foreign 
 affiliation with any foreign country of 
 concern, including the People's Republic of 
 China;
 (C) any current or pending contractual or 
 financial obligation or other agreement 
 specific to a business arrangement, or joint 
 venture-like arrangement with an enterprise 
 owned by a foreign state or any foreign entity;
 (D) whether the small business concern is 
 wholly owned in the People's Republic of China 
 or another foreign country;
 (E) the percentage, if any, of venture 
 capital or institutional investment by an 
 entity that has a general partner or individual 
 holding a leadership role in such entity who 
 has a foreign affiliation with any foreign 
 country of concern, including the People's 
 Republic of China;
 (F) any technology licensing or intellectual 
 property sales to a foreign country of concern, 
 including the People's Republic of China, 
 during the 5-year period preceding submission 
 of the proposal; and
 (G) any foreign business entity, offshore 
 entity, or entity outside the United States 
 related to the small business concern;
 (14) 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;
 (15) 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) 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;
 (ii) has a business entity, parent 
 company, or subsidiary located in the 
 People's Republic of China or another 
 foreign country of concern; or
 (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; and
 (B) the relationships and commitments 
 described in clauses (i) through (iii) of 
 subparagraph (A)--
 (i) interfere with the capacity for 
 activities supported by the Federal 
 agency to be carried out;
 (ii) create duplication with 
 activities supported by the Federal 
 agency;
 (iii) present concerns about 
 conflicts of interest;
 (iv) were not appropriately disclosed 
 to the Federal agency;
 (v) violate Federal law or terms and 
 conditions of the Federal agency; or
 (vi) pose a risk to national 
 security;
 (16) 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; 
 or
 (B) there is a change in ownership, change to 
 entity structure, or other substantial change 
 in circumstances of the small business concern 
 that the Federal agency determines poses a risk 
 to national security; and
 (17) require a small business concern receiving an 
 award under its SBIR program to regularly report to the 
 Federal agency and the Administration throughout the 
 duration of the award on--
 (A) any change to a disclosure required under 
 subparagraphs (A) through (G) of paragraph 
 (13);
 (B) any material misstatement made under 
 paragraph (16)(A); and
 (C) any change described in paragraph 
 (16)(B).
 (h) In addition to the requirements of subsection (f), 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 (including awards 
 under subsection (y)) 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).
 (j)(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 the enactment of the 
Small Business Innovation Development Act of 1982, issue policy 
directives for the general conduct of the SBIR programs within 
the Federal Government, including providing for--
 (A) simplified, standardized, and timely SBIR 
 solicitations;
 (B) a simplified, standardized funding process which 
 provides for (i) the timely receipt and review of 
 proposals; (ii) outside peer review for at least Phase 
 II proposals, if appropriate; (iii) protection of 
 proprietary information provided in proposals; (iv) 
 selection of awardees; (v) retention of rights in data 
 generated in the performance of the contract by the 
 small business concern; (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) if national security or intelligence functions 
 clearly would be jeopardized;
 (D) minimizing regulatory burden associated with 
 participation in the SBIR program for the small 
 business concern 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).
 (2) Modifications.--Not later than 90 days after the 
 date of enactment of the Small Business Research and 
 Development Enhancement Act of 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 Phase III of the SBIR program, 
 as a directed bailment, of any property 
 transferred by a Federal agency to the small 
 business concern in Phase II of an SBIR program 
 for a period of not less than 2 years, 
 beginning on the initial date of the concern's 
 participation in Phase III of such program;
 (C) procedures to ensure, to the extent 
 practicable, that an agency 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 $150,000 in the amount of 
 funds which an agency may award in Phase I of 
 an SBIR program, and to $1,000,000 in Phase II 
 of an SBIR program, and an adjustment of such 
 amounts every year for inflation;
 (E) a process for notifying the participating 
 SBIR agencies 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 603 of the 
 National Science and Technology Policy, 
 Organization, and Priorities Act of 
 1976; or
 (ii) by the Secretary of Defense, in 
 accordance with section 2522 of title 
 10, United States Code;
 (F) enhanced outreach efforts to increase the 
 participation of socially and economically 
 disadvantaged small business concerns, as 
 defined in section 8(a)(4), and the 
 participation of small businesses that are 51 
 percent owned and controlled by women in 
 technological innovation and in SBIR programs, 
 including Phase III of such programs, and the 
 collection of data to document such 
 participation;
 (G) technical and programmatic guidance to 
 encourage agencies to develop gap-funding 
 programs to address the delay between an award 
 for Phase I of an SBIR program and the 
 application for and extension of an award for 
 Phase II of such program;
 (H) procedures to ensure that a small 
 business concern that submits a proposal for a 
 funding agreement for Phase I of an SBIR 
 program and that has received more than 15 
 Phase II SBIR awards during the preceding 5 
 fiscal years is able to demonstrate the extent 
 to which it was able to secure Phase III 
 funding to develop concepts resulting from 
 previous Phase II SBIR awards; and
 (I) procedures to ensure that agencies 
 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 the date of the enactment of the Small 
 Business Innovation Research Program Reauthorization 
 Act of 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 
 Phase I, Phase II, and Phase III;
 (B) to provide for the requirement of a 
 succinct commercialization plan with each 
 application for a Phase II award that is moving 
 toward commercialization;
 (C) to require agencies 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), including 
 establishing standardized procedures for the 
 provision of information pursuant to subsection 
 (k)(3).
 (4) Modifications relating to procurement center 
 representatives.--Upon the enactment of this paragraph, 
 the Administrator shall modify the policy directives 
 issued pursuant to this subsection to require 
 procurement center representatives (as described in 
 section 15(l)) to consult with the appropriate 
 personnel from the relevant Federal agency, to assist 
 small business concerns participating in the SBIR 
 program, particularly in Phase III.
 (k) Database.--
 (1) Public database.--Not later than 180 days after 
 the date of the enactment of the Small Business 
 Innovation Research Program Reauthorization Act of 
 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 Phase I or Phase II SBIR or 
 STTR award from a Federal agency;
 (B) a description of each Phase I or Phase II 
 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 
 35(d);
 (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; and
 (F) for each small business concern that has 
 received a Phase I or Phase II SBIR or STTR 
 award from a Federal agency, whether the small 
 business concern--
 (i) has venture capital, hedge fund, 
 or private equity firm investment and, 
 if so, whether the small business 
 concern is registered as majority-owned 
 by multiple venture capital operating 
 companies, hedge funds, or private 
 equity firms as required under 
 subsection (dd)(3);
 (ii) is owned by a woman or has a 
 woman as a principal investigator;
 (iii) is owned by a socially or 
 economically disadvantaged individual 
 or has a socially or economically 
 disadvantaged individual as a principal 
 investigator;
 (iv) is owned by a faculty member or 
 a student of an institution of higher 
 education, as that term is defined in 
 section 101 of the Higher Education Act 
 of 1965 (20 U.S.C. 1001); or
 (v) received assistance under the 
 Federal and State Technology 
 Partnership Program (FAST Program).
 (2) Government database.--Not later than 90 days 
 after the date of enactment of the SBIR/STTR 
 Reauthorization Act of 2011, the Administrator, in 
 consultation with Federal agencies required to have an 
 SBIR program pursuant to subsection (f)(1) or an STTR 
 program pursuant to subsection (n)(1), shall develop 
 and maintain a database to be used exclusively for SBIR 
 and STTR program evaluation that--
 (A) contains for each small business concern 
 that applies for, submits a proposal for, or 
 receives an award under Phase I or Phase II of 
 the SBIR program or the STTR program--
 (i) the name, size, and location of, 
 and the identifying number assigned by 
 the Administration to, the small 
 business concern;
 (ii) an abstract of the applicable 
 project;
 (iii) the specific aims of the 
 project;
 (iv) the number of employees of the 
 small business concern;
 (v) the names and titles of the key 
 individuals that will carry out the 
 project, the position each key 
 individual holds in the small business 
 concern, and contact information for 
 each key individual;
 (vi) the percentage of effort each 
 individual described in clause (v) will 
 contribute to the project;
 (vii) whether the small business 
 concern is majority-owned by multiple 
 venture capital operating companies, 
 hedge funds, or private equity firms; 
 and
 (viii) the Federal agency to which 
 the application is made and contact 
 information for the person or office 
 within the Federal agency that is 
 responsible for reviewing applications 
 and making awards under the SBIR 
 program or the STTR program;
 (B) contains for each Phase II 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 Phase I or Phase II SBIR or 
 STTR awards, to further the research 
 and development conducted under the 
 award; and
 (iii) any other information received 
 in connection with the award that the 
 Administrator, in conjunction with the 
 SBIR and STTR program managers of 
 Federal agencies, considers relevant 
 and appropriate;
 (C) includes any narrative information that a 
 small business concern receiving a Phase II 
 award voluntarily submits to further describe 
 the outputs and outcomes of its awards;
 (D) includes, for each awardee--
 (i) the name, size, and location of, 
 and any identifying number assigned by 
 the Administrator to, the awardee;
 (ii) whether the awardee has venture 
 capital, hedge fund, or private equity 
 firm investment and, if so--
 (I) the amount of venture 
 capital, hedge fund, or private 
 equity firm investment as of 
 the date of the award;
 (II) the percentage of 
 ownership of the awardee held 
 by a venture capital operating 
 company, hedge fund, or private 
 equity firm, including whether 
 the awardee is majority-owned 
 by multiple venture capital 
 operating companies, hedge 
 funds, or private equity firms; 
 and
 (III) the amount of 
 additional capital that the 
 awardee has invested in the 
 SBIR or STTR technology, which 
 information shall be collected 
 on an annual basis;
 (iii) the names and locations of any 
 affiliates of the awardee;
 (iv) the number of employees of the 
 awardee;
 (v) the number of employees of the 
 affiliates of the awardee; and
 (vi) the names of, and the percentage 
 of ownership of the awardee held by--
 (I) any individual who is not 
 a citizen of the United States 
 or a lawful permanent resident 
 of the United States; or
 (II) any person that is not 
 an individual and is not 
 organized under the laws of a 
 State or the United States;
 (E) 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;
 (F) 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; 
 and
 (G) includes a timely and accurate list of 
 any individual or small business concern that 
 has participated in the SBIR program or STTR 
 program that has been--
 (i) convicted of a fraud-related 
 crime involving funding received under 
 the SBIR program or STTR program; or
 (ii) found civilly liable for a 
 fraud-related violation involving 
 funding received under the SBIR program 
 or STTR program.
 (3) Updating information for database.--
 (A) In general.--A small business concern 
 applying for a Phase II award under this 
 section shall be required to update information 
 in the database established under this 
 subsection for any prior Phase II award 
 received by that small business concern. In 
 complying with this paragraph, a small business 
 concern may apportion sales or additional 
 investment information relating to more than 
 one Phase II award among those awards, if it 
 notes the apportionment for each award.
 (B) Annual updates upon termination.--A small 
 business concern receiving a Phase II award 
 under this section shall--
 (i) update information in the 
 database concerning that award at the 
 termination of the award period; and
 (ii) be requested to voluntarily 
 update such information annually 
 thereafter for a period of 5 years.
 (C) Government database.--Not later than 60 
 days after the date established by a Federal 
 agency for submitting applications or proposals 
 for a Phase I or Phase II award under the SBIR 
 program or STTR program, the head of the 
 Federal agency shall submit to the 
 Administrator the data required under paragraph 
 (2) with respect to each small business concern 
 that applies or submits a proposal for the 
 Phase I or Phase II award.
 (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, United States Code.
 (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, United States 
 Code.
 (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) 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).
 (2) Multiple awards.--An agency referred to in 
 paragraph (1) shall include in its next annual report 
 required under subsection (g)(8) an accounting of the 
 awards the agency has made for Phase I of an SBIR 
 program during the reporting period to entities that 
 have received more than 15 awards for the Phase II 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), an accounting 
 of the number of awards it has made to critical 
 technology topics, as defined in subsection (g)(3), 
 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, 2025.
 (n) Required Expenditures for STTR by Federal Agencies.--
 (1) Required expenditure amounts.--
 (A) In general.--With respect to each fiscal 
 year through fiscal year 2025, 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;
 (ii) 0.3 percent for each of fiscal 
 years 2004 through 2011;
 (iii) 0.35 percent for each of fiscal 
 years 2012 and 2013;
 (iv) 0.40 percent for each of fiscal 
 years 2014 and 2015; and
 (v) 0.45 percent for fiscal year 2016 
 and each fiscal year thereafter.
 (2) Limitations.--A Federal agency 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 25(c)(1) of the Office of Federal 
 Procurement Policy Act); 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) and regulations issued under this Act, 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 603 of the National Science and 
 Technology Policy, Organization, and Priorities 
 Act of 1976; or
 (B) by the Secretary of Defense, in 
 accordance with section 2522 of title 10, 
 United States Code;
 (4)(A) unilaterally receive and evaluate proposals 
 resulting from STTR solicitations; and
 (B) make a final decision on each proposal submitted 
 under the STTR program--
 (i) not later than 1 year after the date on 
 which the applicable solicitation closes, if 
 with respect to the National Institutes of 
 Health or the National Science Foundation, or 
 90 days after the date on which the applicable 
 solicitation closes, if with respect to any 
 other participating agency; or
 (ii) if the Administrator authorizes an 
 extension for a solicitation, not later than 90 
 days after the date that would be applicable to 
 the agency under clause (i);
 (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, United States Code, a section on its STTR 
 program, which section shall describe whether or not 
 the Federal agency complied with the requirements of 
 subsection (n) for the year covered by that plan and 
 include a justification for failure to comply (if 
 applicable),, and shall submit such section to the 
 Committee on Small Business of the Senate, and the 
 Committee on Science and the Committee on Small 
 Business of the House of Representatives;
 (9) collect annually, and maintain in a common format 
 in accordance with the simplified reporting 
 requirements under subsection (v), such information 
 from applicants and awardees as is necessary to assess 
 the STTR program outputs and outcomes, including 
 information necessary to maintain the database 
 described in subsection (k), including--
 (A) whether an applicant or awardee--
 (i) has venture capital, hedge fund, 
 or private equity firm investment or is 
 majority-owned by multiple venture 
 capital operating companies, hedge 
 funds, or private equity firms and, if 
 so--
 (I) the amount of venture 
 capital, hedge fund, or private 
 equity firm investment that the 
 applicant or awardee has 
 received as of the date of the 
 application or award, as 
 applicable; and
 (II) the amount of additional 
 capital that the applicant or 
 awardee has invested in the 
 STTR technology;
 (ii) has an investor that--
 (I) is an individual who is 
 not a citizen of the United 
 States or a lawful permanent 
 resident of the United States 
 and, if so, the name of any 
 such individual; or
 (II) is a person that is not 
 an individual and is not 
 organized under the laws of a 
 State or the United States and, 
 if so, the name of any such 
 person;
 (iii) is owned by a woman or has a 
 woman as a principal investigator;
 (iv) is owned by a socially or 
 economically disadvantaged individual 
 or has a socially or economically 
 disadvantaged individual as a principal 
 investigator;
 (v) is a faculty member or a student 
 of an institution of higher education, 
 as that term is defined in section 101 
 of the Higher Education Act of 1965 (20 
 U.S.C. 1001); or
 (vi) is located in a State in which 
 the total value of contracts awarded to 
 small business concerns under all STTR 
 programs is less than the total value 
 of contracts awarded to small business 
 concerns in a majority of other States, 
 as determined by the Administrator in 
 biennial fiscal years, beginning with 
 fiscal year 2008, based on the most 
 recent statistics compiled by the 
 Administrator;
 (B) if an awardee receives an award in an 
 amount that is more than the award guidelines 
 under this section, a statement from the agency 
 that justifies the award amount; and
 (C) data with respect to the Federal and 
 State Technology Partnership Program (FAST 
 Program);
 (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) 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)) 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 Phase II funding 
 commitments from private sector or non-STTR 
 funding sources;
 (C) the existence of Phase III follow-on 
 commitments for the subject of the research; 
 and
 (D) the presence of other indicators of the 
 commercial potential of the idea;
 (14) implement an outreach program to research 
 institutions and small business concerns for the 
 purpose of enhancing its STTR program, in conjunction 
 with any such outreach done for purposes of the SBIR 
 program;
 (15) provide for and fully implement the tenets of 
 Executive Order No. 13329 (Encouraging Innovation in 
 Manufacturing);
 (16) provide timely notice to the Administrator of 
 any case or controversy before any Federal judicial or 
 administrative tribunal concerning the STTR program of 
 the Federal agency;
 (17) 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;
 (B) the existence of any joint venture or 
 subsidiary of the small business concern that 
 is based in, funded by, or has a foreign 
 affiliation with any foreign country of 
 concern, including the People's Republic of 
 China;
 (C) any current or pending contractual or 
 financial obligation or other agreement 
 specific to a business arrangement, or joint 
 venture-like arrangement with an enterprise 
 owned by a foreign state or any foreign entity;
 (D) whether the small business concern is 
 wholly owned in the People's Republic of China 
 or another foreign country;
 (E) the percentage, if any, of venture 
 capital or institutional investment by an 
 entity that has a general partner or individual 
 holding a leadership role in such entity who 
 has a foreign affiliation with any foreign 
 country of concern, including the People's 
 Republic of China;
 (F) any technology licensing or intellectual 
 property sales to a foreign country of concern, 
 including the People's Republic of China, 
 during the 5-year period preceding submission 
 of the proposal; and
 (G) any foreign business entity, offshore 
 entity, or entity outside the United States 
 related to the small business concern;
 (18) 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;
 (19) 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) 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;
 (ii) has a business entity, parent 
 company, or subsidiary located in the 
 People's Republic of China or another 
 foreign country of concern; or
 (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; and
 (B) the relationships and commitments 
 described in clauses (i) through (iii) of 
 subparagraph (A)--
 (i) interfere with the capacity for 
 activities supported by the Federal 
 agency to be carried out;
 (ii) create duplication with 
 activities supported by the Federal 
 agency;
 (iii) present concerns about 
 conflicts of interest;
 (iv) were not appropriately disclosed 
 to the Federal agency;
 (v) violate Federal law or terms and 
 conditions of the Federal agency; or
 (vi) pose a risk to national 
 security;
 (20) 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; 
 or
 (B) there is a change in ownership, change to 
 entity structure, or other substantial change 
 in circumstances of the small business concern 
 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) any change to a disclosure required under 
 subparagraphs (A) through (G) of paragraph 
 (17);
 (B) any material misstatement made under 
 paragraph (20)(A); and
 (C) any change described in paragraph 
 (20)(B).
 (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) 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 Phase II of the 
 STTR program for a period of not less 
 than 2 years, beginning on the initial 
 date of the concern's participation in 
 Phase III of such program;
 (vii) cost sharing;
 (viii) cost principles and payment 
 schedules; and
 (ix) 1-year awards for Phase I of an 
 STTR program, generally not to exceed 
 $150,000, and 2-year awards for Phase 
 II of an STTR program, generally not to 
 exceed $1,000,000, (each of which the 
 Administrator shall adjust for 
 inflation annually) greater or lesser 
 amounts to be awarded at the discretion 
 of the awarding agency, and shorter or 
 longer periods of time to be approved 
 at the discretion of the awarding 
 agency where appropriate for a 
 particular project;
 (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 3 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;
 (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; and
 (G) procedures to ensure that procurement 
 center representatives (as described in section 
 15(l))--
 (i) consult with the appropriate 
 personnel from the relevant Federal 
 agency, to assist small business 
 concerns participating in the STTR 
 program, particularly in Phase III;
 (ii) provide technical assistance to 
 such concerns to submit a bid for an 
 award of a Federal contract; and
 (iii) consult with the appropriate 
 personnel from the relevant Federal 
 agency in providing the assistance 
 described in clause (i).
 (3) Modifications.--Not later than 120 days after the 
 date of enactment of this paragraph, 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 Phase I, Phase II, 
 and Phase III.
 (q) Discretionary Technical and Business Assistance.--
 (1) In general.--Each Federal agency required by this 
 section to conduct an SBIR program or STTR program may 
 enter into an agreement with 1 or more vendors selected 
 under paragraph (2)(A) to provide small business 
 concerns engaged in SBIR or STTR projects with 
 technical and business assistance services, such as 
 access to a network of scientists and engineers engaged 
 in a wide range of technologies, assistance with 
 product sales, intellectual property protections, 
 market research, market validation, and development of 
 regulatory plans and manufacturing plans, or access to 
 technical and business literature available through on-
 line data bases, for the purpose of assisting such 
 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, including intellectual 
 property protections.
 (2) Vendor selection.--
 (A) In general.--Each agency may select 1 or 
 more vendors from which small business concerns 
 may obtain assistance in meeting the goals 
 listed in paragraph (1) for a term not to 
 exceed 5 years. Such selection shall be 
 competitive and shall utilize merit-based 
 criteria.
 (B) Selection by small business concern.--A 
 small business concern may, by contract or 
 otherwise, select 1 or more vendors to assist 
 the small business concern in meeting the goals 
 listed in paragraph (1).
 (3) Additional technical assistance.--
 (A) Phase i.--A Federal agency described in 
 paragraph (1) may--
 (i) provide to the recipient of a 
 Phase I SBIR or STTR award, through a 
 vendor selected under paragraph (2)(A), 
 the services described in paragraph 
 (1), in an amount equal to not more 
 than $6,500 per year; or
 (ii) authorize the recipient of a 
 Phase I SBIR or STTR award to purchase 
 the services described in paragraph 
 (1), in an amount equal to not more 
 than $6,500 per year, which shall be in 
 addition to the amount of the 
 recipient's award.
 (B) Phase ii.--A Federal agency described in 
 paragraph (1) may--
 (i) provide to the recipient of a 
 Phase II SBIR or STTR award, through a 
 vendor selected under paragraph (2)(A), 
 the services described in paragraph 
 (1), in an amount equal to not more 
 than $50,000 per project; or
 (ii) authorize the recipient of a 
 Phase II SBIR or STTR award to purchase 
 the services described in paragraph 
 (1), in an amount equal to not more 
 than $50,000 per project, which may, as 
 determined appropriate by the head of 
 the Federal agency, be included as part 
 of the recipient's award or be in 
 addition to the amount of the 
 recipient's award.
 (C) Flexibility.--In carrying out 
 subparagraphs (A) and (B), each Federal agency 
 shall provide the allowable amounts to a 
 recipient that meets the eligibility 
 requirements under the applicable subparagraph, 
 if the recipient requests to seek technical or 
 business assistance from an individual or 
 entity other than a vendor selected under 
 paragraph (2)(A) by the Federal agency. 
 Business-related services aimed at improving 
 the commercialization success of a small 
 business concern may be obtained from an 
 entity, such as a public or private 
 organization or an agency of or other entity 
 established or funded by a State that 
 facilitates or accelerates the 
 commercialization of technologies or assists in 
 the creation and growth of private enterprises 
 that are commercializing technology.
 (D) Limitation.--A Federal agency may not--
 (i) use the amounts authorized under 
 subparagraph (A) or (B) unless 1 or 
 more vendors selected under paragraph 
 (2)(A) provides the technical or 
 business assistance to the recipient; 
 or
 (ii) enter a contract with a vendor 
 under paragraph (2)(A) under which the 
 amount provided for technical or 
 business assistance is based on total 
 number of Phase I or Phase II awards.
 (E) Multiple award recipients.--The 
 Administrator shall establish a limit on the 
 amount of technical and business assistance 
 services that may be received or purchased 
 under subparagraph (B) by a small business 
 concern that has received multiple Phase II 
 SBIR or STTR awards for a fiscal year.
 (4) Annual reporting.--
 (A) In general.--A small business concern 
 that receives technical or business assistance 
 from a vendor under this subsection during a 
 fiscal year shall submit to the Federal agency 
 contracting with the vendor a description of 
 the technical or business assistance provided 
 and the benefits and results of the technical 
 or business assistance provided.
 (B) Use of existing reporting mechanism.--The 
 information required under subparagraph (A) 
 shall be collected by a Federal agency as part 
 of a report required to be submitted by small 
 business concerns engaged in SBIR or STTR 
 projects of the Federal agency for which the 
 requirement was in effect on the date of 
 enactment of this paragraph.
 (r) Phase III Agreements, Competitive Procedures, and 
Justification for Awards.--
 (1) In general.--In the case of a small business 
 concern that is awarded a funding agreement for Phase 
 II of an SBIR or STTR program, a Federal agency may 
 enter into a Phase III agreement with that business 
 concern for additional work to be performed during or 
 after the Phase II period. The Phase II funding 
 agreement with the small business concern may, at the 
 discretion of the agency awarding the agreement, set 
 out the procedures applicable to Phase III agreements 
 with that agency or any other agency.
 (2) Definition.--In this subsection, the term ``Phase 
 III 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).
 (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.
 (4) Competitive procedures and justification for 
 awards.--To the greatest extent practicable, Federal 
 agencies and Federal prime contractors shall--
 (A) consider an award under the SBIR program 
 or the STTR program to satisfy the requirements 
 under sections 3201 through 3205 of title 10, 
 United States Code, and any other applicable 
 competition requirements; and
 (B) issue, without further justification, 
 Phase III awards relating to technology, 
 including sole source awards, to the SBIR and 
 STTR award recipients that developed the 
 technology.
 (s) Competitive Selection Procedures for SBIR and STTR 
Programs.--All funds awarded, appropriated, or otherwise made 
available in accordance with subsection (f) or (n) must be 
awarded pursuant to competitive and merit-based selection 
procedures.
 (t) Inclusion in Strategic Plans.--Program information 
relating to the SBIR and STTR programs shall be included by 
each Federal agency in any update or revision required of the 
Federal agency under section 306(b) of title 5, United States 
Code.
 (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 113 of 
 the National Science Foundation Authorization 
 Act of 1988 (42 U.S.C. 1862g);
 (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) 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 Phase I of the SBIR 
 program, if the proposal, though meritorious, 
 is not funded through the SBIR program for that 
 fiscal year due to funding restraints, from a 
 small business concern 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) Reducing Paperwork and Compliance Burden.--
 (1) Standardization of 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), 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.
 (2) Simplification of application and award 
 process.--Not later than 1 year after the date of 
 enactment of this paragraph, and after a period of 
 public comment, the Administrator shall issue 
 regulations or guidelines, taking into consideration 
 the unique needs of each Federal agency, to ensure that 
 each Federal agency required to carry out an SBIR 
 program or STTR program simplifies and standardizes the 
 program proposal, selection, contracting, compliance, 
 and audit procedures for the SBIR program or STTR 
 program of the Federal agency (including procedures 
 relating to overhead rates for applicants and 
 documentation requirements) to reduce the paperwork and 
 regulatory compliance burden on small business concerns 
 applying to and participating in the SBIR program or 
 STTR program.
 (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.
 (x) Research and Development Focus.--
 (1) Revision and update of criteria and procedures of 
 identification.--In carrying out subsection (g), the 
 Secretary of Defense shall, not less often than once 
 every 4 years, revise and update the criteria and 
 procedures utilized to identify areas of the research 
 and development efforts of the Department of Defense 
 which are suitable for the provision of funds under the 
 Small Business Innovation Research Program and the 
 Small Business Technology Transfer Program.
 (2) Utilization of plans.--The criteria and 
 procedures described in paragraph (1) shall be 
 developed through the use of the most current versions 
 of the following plans:
 (A) The Joint Warfighting Science and 
 Technology Plan required under section 270 of 
 the National Defense Authorization Act for 
 Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 
 2501 note).
 (B) The Defense Technology Area Plan of the 
 Department of Defense.
 (C) The Basic Research Plan of the Department 
 of Defense.
 (3) Input in identification of areas of effort.--The 
 criteria and procedures described in paragraph (1) 
 shall include input in the identification of areas of 
 research and development efforts described in that 
 paragraph from Department of Defense program managers 
 (PMs) and program executive officers (PEOs).
 (y) Commercialization Readiness Program.--
 (1) In general.--The Secretary of Defense and the 
 Secretary of each military department is authorized to 
 create and administer a ``Commercialization Readiness 
 Program'' to accelerate the transition of technologies, 
 products, and services developed under the Small 
 Business Innovation Research Program or Small Business 
 Technology Transfer Program to Phase III, including the 
 acquisition process. The authority to create and 
 administer a Commercialization Readiness Program under 
 this subsection may not be construed to eliminate or 
 replace any other SBIR program or STTR program that 
 enhances the insertion or transition of SBIR or STTR 
 technologies, including any such program in effect on 
 the date of enactment of the National Defense 
 Authorization Act for Fiscal Year 2006 (Public Law 109-
 163; 119 Stat. 3136).
 (2) Identification of research programs for 
 accelerated transition to acquisition process.--In 
 carrying out the Commercialization Readiness Program, 
 the Secretary of Defense and the Secretary of each 
 military department shall identify research programs of 
 the Small Business Innovation Research Program or Small 
 Business Technology Transfer Program that have the 
 potential for rapid transitioning to Phase III and into 
 the acquisition process.
 (3) Limitation.--No research program may be 
 identified under paragraph (2) unless the Secretary of 
 the military department concerned certifies in writing 
 that the successful transition of the program to Phase 
 III and into the acquisition process is expected to 
 meet high priority military requirements of such 
 military department.
 (4) Funding.--
 (A) In general.--The Secretary of Defense and 
 each Secretary of a military department may use 
 not more than an amount equal to 1 percent of 
 the funds available to the Department of 
 Defense or the military department pursuant to 
 the Small Business Innovation Research Program 
 for payment of expenses incurred to administer 
 the Commercialization Readiness Program under 
 this subsection.
 (B) Limitations.--The funds described in 
 subparagraph (A)--
 (i) shall not be subject to the 
 limitations on the use of funds in 
 subsection (f)(2); and
 (ii) shall not be used to make Phase 
 III awards.
 (5) Insertion incentives.--For any contract with a 
 value of not less than $100,000,000, the Secretary of 
 Defense is authorized to--
 (A) establish goals for the transition of 
 Phase III technologies in subcontracting plans; 
 and
 (B) require a prime contractor on such a 
 contract to report the number and dollar amount 
 of contracts entered into by that prime 
 contractor for Phase III SBIR or STTR projects.
 (6) Goal for sbir and sttr technology insertion.--The 
 Secretary of Defense shall--
 (A) set a goal to increase the number of 
 Phase II SBIR contracts and the number of Phase 
 II STTR contracts awarded by the Secretary that 
 lead to technology transition into programs of 
 record or fielded systems;
 (B) use incentives in effect on the date of 
 enactment of the SBIR/STTR Reauthorization Act 
 of 2011, or create new incentives, to encourage 
 agency program managers and prime contractors 
 to meet the goal under subparagraph (A); and
 (C) submit to the Administrator for inclusion 
 in the annual report under subsection (b)(7)--
 (i) the number and percentage of 
 Phase II SBIR and STTR contracts 
 awarded by the Secretary that led to 
 technology transition into programs of 
 record or fielded systems;
 (ii) information on the status of 
 each project that received funding 
 through the Commercialization Readiness 
 Program and efforts to transition those 
 projects into programs of record or 
 fielded systems; and
 (iii) a description of each incentive 
 that has been used by the Secretary 
 under subparagraph (B) and the 
 effectiveness of that incentive with 
 respect to meeting the goal under 
 subparagraph (A).
 (z) Encouraging Innovation in Energy Efficiency.--
 (1) Federal agency energy-related priority.--In 
 carrying out its duties under this section relating to 
 SBIR and STTR solicitations by Federal departments and 
 agencies, the Administrator shall--
 (A) ensure that such departments and agencies 
 give high priority to small business concerns 
 that participate in or conduct energy 
 efficiency or renewable energy system research 
 and development projects; and
 (B) include in the annual report to Congress 
 under subsection (b)(7) a determination of 
 whether the priority described in subparagraph 
 (A) is being carried out.
 (2) Consultation required.--The Administrator shall 
 consult with the heads of other Federal departments and 
 agencies in determining whether priority has been given 
 to small business concerns that participate in or 
 conduct energy efficiency or renewable energy system 
 research and development projects, as required by this 
 subsection.
 (3) Guidelines.--The Administrator shall, as soon as 
 is practicable after the date of enactment of this 
 subsection, issue guidelines and directives to assist 
 Federal agencies in meeting the requirements of this 
 subsection.
 (4) Definitions.--In this subsection--
 (A) the term ``biomass''--
 (i) means any organic material that 
 is available on a renewable or 
 recurring basis, including--
 (I) agricultural crops;
 (II) trees grown for energy 
 production;
 (III) wood waste and wood 
 residues;
 (IV) plants (including 
 aquatic plants and grasses);
 (V) residues;
 (VI) fibers;
 (VII) animal wastes and other 
 waste materials; and
 (VIII) fats, oils, and 
 greases (including recycled 
 fats, oils, and greases); and
 (ii) does not include--
 (I) paper that is commonly 
 recycled; or
 (II) unsegregated solid 
 waste;
 (B) the term ``energy efficiency project'' 
 means the installation or upgrading of 
 equipment that results in a significant 
 reduction in energy usage; and
 (C) the term ``renewable energy system'' 
 means a system of energy derived from--
 (i) a wind, solar, biomass (including 
 biodiesel), or geothermal source; or
 (ii) hydrogen derived from biomass or 
 water using an energy source described 
 in clause (i).
 (aa) Limitation on Size of Awards.--
 (1) Limitation.--No Federal agency may issue an award 
 under the SBIR program or the STTR program if the size 
 of the award exceeds the award guidelines established 
 under this section by more than 50 percent.
 (2) Maintenance of information.--Participating 
 agencies shall maintain information on awards exceeding 
 the guidelines established under this section, 
 including--
 (A) the amount of each award;
 (B) a justification for exceeding the 
 guidelines for each award;
 (C) the identity and location of each award 
 recipient; and
 (D) whether an award recipient has received 
 any venture capital, hedge fund, or private 
 equity firm investment and, if so, whether the 
 recipient is majority-owned by multiple venture 
 capital operating companies, hedge funds, or 
 private equity firms.
 (3) Reports.--The Administrator shall include the 
 information described in paragraph (2) in the annual 
 report of the Administrator to Congress.
 (4) Waiver for specific topic.--Upon the receipt of 
 an application from a Federal agency, the Administrator 
 may grant a waiver from the requirement under paragraph 
 (1) with respect to a specific topic (but not for the 
 agency as a whole) for a fiscal year if the 
 Administrator determines, based on the information 
 contained in the application from the agency, that--
 (A) the requirement under paragraph (1) will 
 interfere with the ability of the agency to 
 fulfill its research mission through the SBIR 
 program or the STTR program; and
 (B) the agency will minimize, to the maximum 
 extent possible, the number of awards that do 
 not satisfy the requirement under paragraph (1) 
 to preserve the nature and intent of the SBIR 
 program and the STTR program.
 (5) Rule of construction.--Nothing in this subsection 
 shall be construed to prevent a Federal agency from 
 supplementing an award under the SBIR program or the 
 STTR program using funds of the Federal agency that are 
 not part of the SBIR program or the STTR program of the 
 Federal agency.
 (bb) Subsequent Phase II Awards.--
 (1) Agency flexibility.--A small business concern 
 that received a Phase I award from a Federal agency 
 under this section shall be eligible to receive a 
 subsequent Phase II award from another Federal agency, 
 if the head of each relevant Federal agency or the 
 relevant component of the Federal agency makes a 
 written determination that the topics of the relevant 
 awards are the same and both agencies report the awards 
 to the Administrator for inclusion in the public 
 database under subsection (k).
 (2) SBIR and sttr program flexibility.--A small 
 business concern that received a Phase I award under 
 this section under the SBIR program or the STTR program 
 may receive a subsequent Phase II award in either the 
 SBIR program or the STTR program and the participating 
 agency or agencies shall report the awards to the 
 Administrator for inclusion in the public database 
 under subsection (k).
 (3) Preventing duplicative awards.--The head of a 
 Federal agency shall verify that any activity to be 
 performed with respect to a project with a Phase I or 
 Phase II SBIR or STTR award has not been funded under 
 the SBIR program or STTR program of another Federal 
 agency.
 (cc) Phase Flexibility.--During fiscal years 2012 through 
2025, the National Institutes of Health, the Department of 
Defense, [and the Department of Education] the Department of 
Education, and the National Aeronautics and Space 
Administration may each 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 applicable 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.
 (dd) Participation of Small Business Concerns Majority-Owned 
by Venture Capital Operating Companies, Hedge Funds, or Private 
Equity Firms in the SBIR Program.--
 (1) Authority.--Upon providing a written 
 determination described in paragraph (2) to the 
 Administrator, the Committee on Small Business and 
 Entrepreneurship of the Senate, and the Committee on 
 Small Business and the Committee on Science, Space, and 
 Technology of the House of Representatives, not later 
 than 30 days before the date on which any such award is 
 made--
 (A) the Director of the National Institutes 
 of Health, the Secretary of Energy, and the 
 Director of the National Science Foundation may 
 award not more than 25 percent of the funds 
 allocated for the SBIR program of the 
 applicable Federal agency to small business 
 concerns that are owned in majority part by 
 multiple venture capital operating companies, 
 hedge funds, or private equity firms through 
 competitive, merit-based procedures that are 
 open to all eligible small business concerns; 
 and
 (B) the head of a Federal agency other than a 
 Federal agency described in subparagraph (A) 
 that participates in the SBIR program may award 
 not more than 15 percent of the funds allocated 
 for the SBIR program of the Federal agency to 
 small business concerns that are owned in 
 majority part by multiple venture capital 
 operating companies, hedge funds, or private 
 equity firms through competitive, merit-based 
 procedures that are open to all eligible small 
 business concerns.
 (2) Determination.--A written determination described 
 in this paragraph is a written determination by the 
 head of a Federal agency that explains how the use of 
 the authority under paragraph (1) will--
 (A) induce additional venture capital, hedge 
 fund, or private equity firm funding of small 
 business innovations;
 (B) substantially contribute to the mission 
 of the Federal agency;
 (C) demonstrate a need for public research; 
 and
 (D) otherwise fulfill the capital needs of 
 small business concerns for additional 
 financing for SBIR projects.
 (3) Registration.--A small business concern that is 
 majority-owned by multiple venture capital operating 
 companies, hedge funds, or private equity firms and 
 qualified for participation in the program authorized 
 under paragraph (1) shall--
 (A) register with the Administrator on the 
 date that the small business concern submits an 
 application for an award under the SBIR 
 program; and
 (B) indicate in any SBIR proposal that the 
 small business concern is registered under 
 subparagraph (A) as majority-owned by multiple 
 venture capital operating companies, hedge 
 funds, or private equity firms.
 (4) Compliance.--
 (A) In general.--The head of a Federal agency 
 that makes an award under this subsection 
 during a fiscal year shall collect and submit 
 to the Administrator data relating to the 
 number and dollar amount of Phase I awards, 
 Phase II awards, and any other category of 
 awards by the Federal agency under the SBIR 
 program during that fiscal year.
 (B) Annual reporting.--The Administrator 
 shall include as part of each annual report by 
 the Administration under subsection (b)(7) any 
 data submitted under subparagraph (A) and a 
 discussion of the compliance of each Federal 
 agency that makes an award under this 
 subsection during the fiscal year with the 
 maximum percentages under paragraph (1).
 (5) Enforcement.--If a Federal agency awards more 
 than the percent of the funds allocated for the SBIR 
 program of the Federal agency authorized under 
 paragraph (1) for a purpose described in paragraph (1), 
 the head of the Federal agency shall transfer an amount 
 equal to the amount awarded in excess of the amount 
 authorized under paragraph (1) to the funds for general 
 SBIR programs from the non-SBIR and non-STTR research 
 and development funds of the Federal agency not later 
 than 180 days after the date on which the Federal 
 agency made the award that caused the total awarded 
 under paragraph (1) to be more than the amount 
 authorized under paragraph (1) for a purpose described 
 in paragraph (1).
 (6) Final decisions on applications under the sbir 
 program.--
 (A) Definition.--In this paragraph, the term 
 ``covered small business concern'' means a 
 small business concern that--
 (i) was not majority-owned by 
 multiple venture capital operating 
 companies, hedge funds, or private 
 equity firms on the date on which the 
 small business concern submitted an 
 application in response to a 
 solicitation under the SBIR programs; 
 and
 (ii) on the date of the award under 
 the SBIR program is majority-owned by 
 multiple venture capital operating 
 companies, hedge funds, or private 
 equity firms.
 (B) In general.--If a Federal agency does not 
 make an award under a solicitation under the 
 SBIR program before the date that is 9 months 
 after the date on which the period for 
 submitting applications under the solicitation 
 ends--
 (i) a covered small business concern 
 is eligible to receive the award, 
 without regard to whether the covered 
 small business concern meets the 
 requirements for receiving an award 
 under the SBIR program for a small 
 business concern that is majority-owned 
 by multiple venture capital operating 
 companies, hedge funds, or private 
 equity firms, if the covered small 
 business concern meets all other 
 requirements for such an award; and
 (ii) the head of the Federal agency 
 shall transfer an amount equal to any 
 amount awarded to a covered small 
 business concern under the solicitation 
 to the funds for general SBIR programs 
 from the non-SBIR and non-STTR research 
 and development funds of the Federal 
 agency, not later than 90 days after 
 the date on which the Federal agency 
 makes the award.
 (7) Evaluation criteria.--A Federal agency may not 
 use investment of venture capital or investment from 
 hedge funds or private equity firms as a criterion for 
 the award of contracts under the SBIR program or STTR 
 program.
 (ee) Collaborating With Federal Laboratories and Research and 
Development Centers.--
 (1) Authorization.--Subject to the limitations under 
 this section, the head of each participating Federal 
 agency may make SBIR and STTR awards to any eligible 
 small business concern that--
 (A) intends to enter into an agreement with a 
 Federal laboratory or federally funded research 
 and development center for portions of the 
 activities to be performed under that award; or
 (B) has entered into a cooperative research 
 and development agreement (as defined in 
 section 12(d) of the Stevenson-Wydler 
 Technology Innovation Act of 1980 (15 U.S.C. 
 3710a(d))) with a Federal laboratory.
 (2) Prohibition.--No Federal agency shall--
 (A) condition an SBIR or STTR award upon 
 entering into agreement with any Federal 
 laboratory or any federally funded laboratory 
 or research and development center for any 
 portion of the activities to be performed under 
 that award;
 (B) approve an agreement between a small 
 business concern receiving an SBIR or STTR 
 award and a Federal laboratory or federally 
 funded laboratory or research and development 
 center, if the small business concern performs 
 a lesser portion of the activities to be 
 performed under that award than required by 
 this section and by the SBIR Policy Directive 
 and the STTR Policy Directive of the 
 Administrator; or
 (C) approve an agreement that violates any 
 provision, including any data rights 
 protections provision, of this section or the 
 SBIR and the STTR Policy Directives.
 (3) Implementation.--Not later than 180 days after 
 the date of enactment of this subsection, the 
 Administrator shall modify the SBIR Policy Directive 
 and the STTR Policy Directive issued under this section 
 to ensure that small business concerns--
 (A) have the flexibility to use the resources 
 of the Federal laboratories or federally funded 
 research and development centers; and
 (B) are not mandated to enter into agreement 
 with any Federal laboratory or any federally 
 funded laboratory or research and development 
 center as a condition of an award.
 (4) Advance payment.--If a small business concern 
 receiving an award under this section enters into an 
 agreement with a Federal laboratory or federally funded 
 research and development center for portions of the 
 activities to be performed under that award, the 
 Federal laboratory or federally funded research and 
 development center may not require advance payment from 
 the small business concern in an amount greater than 
 the amount necessary to pay for 30 days of such 
 activities.
 (ff) Additional SBIR and STTR Awards.--
 (1) Express authority for awarding a sequential phase 
 ii award.--A small business concern that receives a 
 Phase II SBIR award or a Phase II STTR award for a 
 project remains eligible to receive 1 additional Phase 
 II SBIR award or Phase II STTR award for continued work 
 on that project.
 (2) Preventing duplicative awards.--The head of a 
 Federal agency shall verify that any activity to be 
 performed with respect to a project with a Phase I or 
 Phase II SBIR or STTR award has not been funded under 
 the SBIR program or STTR program of another Federal 
 agency.
 (gg) Pilot Program.--
 (1) Authorization.--The head of each covered Federal 
 agency may allocate not more than 10 percent of the 
 funds allocated to the SBIR program and the STTR 
 program of the covered Federal agency--
 (A) for awards for technology development, 
 testing, evaluation, and commercialization 
 assistance for SBIR and STTR Phase II 
 technologies; or
 (B) to support the progress of research, 
 research and development, and commercialization 
 conducted under the SBIR or STTR programs to 
 Phase III.
 (2) Application by federal agency.--
 (A) In general.--A covered Federal agency may 
 not establish a pilot program unless the 
 covered Federal agency makes a written 
 application to the Administrator, not later 
 than 90 days before the first day of the fiscal 
 year in which the pilot program is to be 
 established, that describes a compelling reason 
 that additional investment in SBIR or STTR 
 technologies is necessary, including unusually 
 high regulatory, systems integration, or other 
 costs relating to development or manufacturing 
 of identifiable, highly promising small 
 business technologies or a class of such 
 technologies expected to substantially advance 
 the mission of the agency.
 (B) Determination.--The Administrator shall--
 (i) make a determination regarding an 
 application submitted under 
 subparagraph (A) not later than 30 days 
 before the first day of the fiscal year 
 for which the application is submitted;
 (ii) publish the determination in the 
 Federal Register; and
 (iii) make a copy of the 
 determination and any related materials 
 available to the Committee on Small 
 Business and Entrepreneurship of the 
 Senate and the Committee on Small 
 Business and the Committee on Science, 
 Space, and Technology of the House of 
 Representatives.
 (3) Maximum amount of award.--The head of a covered 
 Federal agency may not make an award under a pilot 
 program in excess of 3 times the dollar amounts 
 generally established for Phase II awards under 
 subsection (j)(2)(D) or (p)(2)(B)(ix).
 (4) Registration.--Any applicant that receives an 
 award under a pilot program shall register with the 
 Administrator in a registry that is available to the 
 public.
 (5) Award criteria or consideration.--When making an 
 award under this section, the head of a covered Federal 
 agency shall give consideration to whether the 
 technology to be supported by the award is likely to be 
 manufactured in the United States.
 (6) Report.--The head of each covered Federal agency 
 shall include in the annual report of the covered 
 Federal agency to the Administrator an analysis of the 
 various activities considered for inclusion in the 
 pilot program of the covered Federal agency and a 
 statement of the reasons why each activity considered 
 was included or not included, as the case may be.
 (7) Termination.--The authority to establish a pilot 
 program under this section expires at the end of fiscal 
 year 2025.
 (8) Definitions.--In this subsection--
 (A) the term ``covered Federal agency''--
 (i) means a Federal agency 
 participating in the SBIR program or 
 the STTR program; and
 (ii) does not include the Department 
 of Defense; and
 (B) the term ``pilot program'' means each 
 program established under paragraph (1).
 (hh) Timing of Release of Funding.--
 (1) In general.--Federal agencies participating in 
 the SBIR program or STTR program shall, to the extent 
 possible, shorten the amount of time between the 
 provision of notice of an award under the SBIR program 
 or STTR program and the subsequent release of funding 
 with respect to the award.
 (2) Pilot program to accelerate department of defense 
 sbir and sttr awards.--
 (A) In general.--Not later than 1 year after 
 the date of enactment of this paragraph, the 
 Under Secretary of Defense for Research and 
 Engineering, acting through the Director of 
 Defense Procurement and Acquisition Policy of 
 the Department of Defense, shall establish a 
 pilot program to reduce the time for awards 
 under the SBIR and STTR programs of the 
 Department of Defense, under which the 
 Department of Defense shall--
 (i) develop simplified and 
 standardized procedures and model 
 contracts throughout the Department of 
 Defense for Phase I, Phase II, and 
 Phase III SBIR awards;
 (ii) for Phase I SBIR and STTR 
 awards, reduce the amount of time 
 between solicitation closure and award;
 (iii) for Phase II SBIR and STTR 
 awards, reduce the amount of time 
 between the end of a Phase I award and 
 the start of the Phase II award;
 (iv) for Phase II SBIR and STTR 
 awards that skip Phase I, reduce the 
 amount of time between solicitation 
 closure and award;
 (v) for sequential Phase II SBIR and 
 STTR awards, reduce the amount of time 
 between Phase II awards; and
 (vi) reduce the award times described 
 in clauses (ii), (iii), (iv), and (v) 
 to be as close to 90 days as possible.
 (B) Consultation.--In carrying out the pilot 
 program under subparagraph (A), the Director of 
 Defense Procurement and Acquisition Policy of 
 the Department of Defense shall consult with 
 the Director of the Office of Small Business 
 Programs of the Department of Defense.
 (C) Termination.--The pilot program under 
 subparagraph (A) shall terminate on September 
 30, 2025.
 (ii) Reporting on Timing.--
 (1) In general.--Federal agencies participating in 
 the SBIR program or STTR program shall provide to the 
 Administrator, for the annual report on the SBIR and 
 STTR program under subsection (b)(7), the average 
 amount of time the agency takes to make a final 
 decision on proposals submitted under such programs, 
 the average amount of time the agency takes to release 
 funding with respect to an award under such programs, 
 and the goals established to reduce such amounts.
 (2) Comptroller general reports.--The Comptroller 
 General of the United States shall submit to the 
 Committee on Small Business and Entrepreneurship of the 
 Senate, the Committee on Armed Services of the Senate, 
 the Committee on Small Business of the House of 
 Representatives, and the Committee on Armed Services of 
 the House of Representatives--
 (A) not later than 1 year after the date of 
 enactment of this paragraph, and every year 
 thereafter for 3 years, a report that--
 (i) provides the average and median 
 amount of time that each component of 
 the Department of Defense with an SBIR 
 or STTR program takes to review and 
 make a final decision on proposals 
 submitted under the program; and
 (ii) compares that average and median 
 amount of time with that of other 
 Federal agencies participating in the 
 SBIR or STTR program; and
 (B) not later than December 5, 2021, a report 
 that--
 (i) includes the information 
 described in subparagraph (A);
 (ii) assesses where each Federal 
 agency participating in the SBIR or 
 STTR program needs improvement with 
 respect to the proposal review and 
 award times under the program;
 (iii) identifies best practices for 
 shortening the proposal review and 
 award times under the SBIR and STTR 
 programs, including the pros and cons 
 of using contracts compared to grants; 
 and
 (iv) analyzes the efficacy of the 
 pilot program established under 
 subsection (hh)(2).
 (jj) Phase 0 Proof of Concept Partnership Pilot Program.--
 (1) In general.--The Director of the National 
 Institutes of Health may use $5,000,000 of the funds 
 allocated under subsection (n)(1) for a Proof of 
 Concept Partnership pilot program to accelerate the 
 creation of small businesses and the commercialization 
 of research innovations from qualifying institutions. 
 To implement this program, the Director shall award, 
 through a competitive, merit-based process, grants to 
 qualifying institutions. These grants shall only be 
 used to administer Proof of Concept Partnership awards 
 in conformity with this subsection.
 (2) Definitions.--In this subsection--
 (A) the term ``Director'' means the Director 
 of the National Institutes of Health;
 (B) the term ``pilot program'' refers to the 
 Proof of Concept Partnership pilot program; and
 (C) the terms ``qualifying institution'' and 
 ``institution'' mean a university or other 
 research institution that participates in the 
 National Institutes of Health's STTR program.
 (3) Proof of concept partnerships.--
 (A) In general.--A Proof of Concept 
 Partnership shall be set up by a qualifying 
 institution to award grants to individual 
 researchers. These grants should provide 
 researchers with the initial investment and the 
 resources to support the proof of concept work 
 and commercialization mentoring needed to 
 translate promising research projects and 
 technologies into a viable company. This work 
 may include technical validations, market 
 research, clarifying intellectual property 
 rights position and strategy, and investigating 
 commercial or business opportunities.
 (B) Award guidelines.--The administrator of a 
 Proof of Concept Partnership program shall 
 award grants in accordance with the following 
 guidelines:
 (i) The Proof of Concept Partnership 
 shall use a market-focused project 
 management oversight process, 
 including--
 (I) a rigorous, diverse 
 review board comprised of local 
 experts in translational and 
 proof of concept research, 
 including industry, start-up, 
 venture capital, technical, 
 financial, and business experts 
 and university technology 
 transfer officials;
 (II) technology validation 
 milestones focused on market 
 feasibility;
 (III) simple reporting 
 effective at redirecting 
 projects; and
 (IV) the willingness to 
 reallocate funding from failing 
 projects to those with more 
 potential.
 (ii) Not more than $100,000 shall be 
 awarded towards an individual proposal.
 (C) Educational resources and guidance.--The 
 administrator of a Proof of Concept Partnership 
 program shall make educational resources and 
 guidance available to researchers attempting to 
 commercialize their innovations.
 (4) Awards.--
 (A) Size of award.--The Director may make 
 awards to a qualifying institution for up to 
 $1,000,000 per year for up to 4 years.
 (B) Award criteria.--In determining which 
 qualifying institutions receive pilot program 
 grants, the Director shall consider, in 
 addition to any other criteria the Director 
 determines necessary, the extent to which 
 qualifying institutions--
 (i) have an established and proven 
 technology transfer or 
 commercialization office and have a 
 plan for engaging that office in the 
 program's implementation;
 (ii) have demonstrated a commitment 
 to local and regional economic 
 development;
 (iii) are located in diverse 
 geographies and are of diverse sizes;
 (iv) can assemble project management 
 boards comprised of industry, start-up, 
 venture capital, technical, financial, 
 and business experts;
 (v) have an intellectual property 
 rights strategy or office; and
 (vi) demonstrate a plan for 
 sustainability beyond the duration of 
 the funding award.
 (5) Limitations.--The funds for the pilot program 
 shall not be used--
 (A) for basic research, but to evaluate the 
 commercial potential of existing discoveries, 
 including--
 (i) proof of concept research or 
 prototype development; and
 (ii) activities that contribute to 
 determining a project's 
 commercialization path, to include 
 technical validations, market research, 
 clarifying intellectual property 
 rights, and investigating commercial 
 and business opportunities; or
 (B) to fund the acquisition of research 
 equipment or supplies unrelated to 
 commercialization activities.
 (6) Evaluative report.--The Director shall submit to 
 the Committee on Science, Space, and Technology and the 
 Committee on Small Business of the House of 
 Representatives and the Committee on Small Business and 
 Entrepreneurship of the Senate an evaluative report 
 regarding the activities of the pilot program. The 
 report shall include--
 (A) a detailed description of the 
 institutional and proposal selection process;
 (B) an accounting of the funds used in the 
 pilot program;
 (C) a detailed description of the pilot 
 program, including incentives and activities 
 undertaken by review board experts;
 (D) a detailed compilation of results 
 achieved by the pilot program, including the 
 number of small business concerns included and 
 the number of business packages developed, and 
 the number of projects that progressed into 
 subsequent STTR phases; and
 (E) an analysis of the program's 
 effectiveness with supporting data.
 (7) Sunset.--The pilot program under this subsection 
 shall terminate at the end of fiscal year 2025.
 (kk) Phase III Reporting.--The annual SBIR or STTR report to 
Congress by the Administration under subsection (b)(7) shall 
include, for each Phase III award--
 (1) the name of the agency or component of the agency 
 or the non-Federal source of capital making the Phase 
 III award;
 (2) the name of the small business concern or 
 individual receiving the Phase III award; and
 (3) the dollar amount of the Phase III award.
 (ll) Consent To Release Contact Information to 
Organizations.--
 (1) Enabling concern to give consent.--Each Federal 
 agency required by this section to conduct an SBIR 
 program or an STTR program shall enable a small 
 business concern that is an SBIR applicant or an STTR 
 applicant to indicate to the Federal agency whether the 
 Federal agency has the consent of the concern to--
 (A) identify the concern to appropriate local 
 and State-level economic development 
 organizations as an SBIR applicant or an STTR 
 applicant; and
 (B) release the contact information of the 
 concern to such organizations.
 (2) Rules.--The Administrator shall establish rules 
 to implement this subsection. The rules shall include a 
 requirement that a Federal agency include in the SBIR 
 and STTR application a provision through which the 
 applicant can indicate consent for purposes of 
 paragraph (1).
 (mm) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
 (1) In general.--Subject to paragraph (3) and until 
 September 30, 2025, the Administrator shall allow each 
 Federal agency required to conduct an SBIR program to 
 use not more than 3 percent of the funds allocated to 
 the SBIR program of the Federal agency for--
 (A) the administration of the SBIR program or 
 the STTR program of the Federal agency;
 (B) the provision of outreach and technical 
 assistance relating to the SBIR program or STTR 
 program of the Federal agency, including 
 technical assistance site visits, personnel 
 interviews, and national conferences;
 (C) the implementation of commercialization 
 and outreach initiatives that were not in 
 effect on the date of enactment of this 
 subsection;
 (D) carrying out the program under subsection 
 (y);
 (E) activities relating to oversight and 
 congressional reporting, including waste, 
 fraud, and abuse prevention activities;
 (F) targeted reviews of recipients of awards 
 under the SBIR program or STTR program of the 
 Federal agency that the head of the Federal 
 agency determines are at high risk for fraud, 
 waste, or abuse to ensure compliance with 
 requirements of the SBIR program or STTR 
 program, respectively;
 (G) the implementation of oversight and 
 quality control measures, including 
 verification of reports and invoices and cost 
 reviews;
 (H) carrying out subsection (dd);
 (I) contract processing costs relating to the 
 SBIR program or STTR program of the Federal 
 agency;
 (J) funding for additional personnel and 
 assistance with application reviews; and
 (K) funding for improvements that increase 
 commonality across data systems, reduce 
 redundancy, and improve data oversight and 
 accuracy.
 (2) Outreach and technical assistance.--
 (A) In general.--Except as provided in 
 subparagraph (B), a Federal agency 
 participating in the program under this 
 subsection shall use a portion of the funds 
 authorized for uses under paragraph (1) to 
 carry out the policy directive required under 
 subsection (j)(2)(F) and to increase the 
 participation of States with respect to which a 
 low level of SBIR awards have historically been 
 awarded.
 (B) Waiver.--A Federal agency may request the 
 Administrator to waive the requirement 
 contained in subparagraph (A). Such request 
 shall include an explanation of why the waiver 
 is necessary. The Administrator may grant the 
 waiver based on a determination that the agency 
 has demonstrated a sufficient need for the 
 waiver, that the outreach objectives of the 
 agency are being met, and that there is 
 increased participation by States with respect 
 to which a low level of SBIR awards have 
 historically been awarded.
 (3) Performance criteria.--A Federal agency may not 
 use funds as authorized under paragraph (1) until after 
 the effective date of performance criteria, which the 
 Administrator shall establish, to measure any benefits 
 of using funds as authorized under paragraph (1) and to 
 assess continuation of the authority under paragraph 
 (1).
 (4) Rules.--Not later than 180 days after the date of 
 enactment of this subsection, the Administrator shall 
 issue rules to carry out this subsection.
 (5) Coordination with ig.--Each Federal agency shall 
 coordinate the activities funded under subparagraph 
 (E), (F), or (G) of paragraph (1) with their respective 
 Inspectors General, when appropriate, and each Federal 
 agency that allocates more than $50,000,000 to the SBIR 
 program of the Federal agency for a fiscal year may 
 share such funding with its Inspector General when the 
 Inspector General performs such activities.
 (6) Reporting.--The Administrator shall collect data 
 and provide to the Committee on Small Business and 
 Entrepreneurship of the Senate and the Committee on 
 Small Business, the Committee on Science, Space, and 
 Technology, and the Committee on Appropriations of the 
 House of Representatives a report on the use of funds 
 under this subsection, including funds used to achieve 
 the objectives of paragraph (2)(A) and any use of the 
 waiver authority under paragraph (2)(B).
 (nn) Annual Report on SBIR and STTR Program Goals.--
 (1) Development of metrics.--The head of each Federal 
 agency required to participate in the SBIR program or 
 the STTR program shall develop metrics to evaluate the 
 effectiveness and the benefit to the people of the 
 United States of the SBIR program and the STTR program 
 of the Federal agency that--
 (A) are science-based and statistically 
 driven;
 (B) reflect the mission of the Federal 
 agency; and
 (C) include factors relating to the economic 
 impact of the programs.
 (2) Evaluation.--The head of each Federal agency 
 described in paragraph (1) shall conduct an annual 
 evaluation using the metrics developed under paragraph 
 (1) of--
 (A) the SBIR program and the STTR program of 
 the Federal agency; and
 (B) the benefits to the people of the United 
 States of the SBIR program and the STTR program 
 of the Federal agency.
 (3) Report.--
 (A) In general.--The head of each Federal 
 agency described in paragraph (1) shall submit 
 to the appropriate committees of Congress and 
 the Administrator an annual report describing 
 in detail the results of an evaluation 
 conducted under paragraph (2).
 (B) Public availability of report.--The head 
 of each Federal agency described in paragraph 
 (1) shall make each report submitted under 
 subparagraph (A) available to the public 
 online.
 (C) Definition.--In this paragraph, the term 
 ``appropriate committees of Congress'' means--
 (i) the Committee on Small Business 
 and Entrepreneurship of the Senate; and
 (ii) the Committee on Small Business 
 and the Committee on Science, Space, 
 and Technology of the House of 
 Representatives.
 (oo) Competitive Selection Procedures for SBIR and STTR 
Programs.--All funds awarded, appropriated, or otherwise made 
available in accordance with subsection (f) or (n) must be 
awarded pursuant to competitive and merit-based selection 
procedures.
 (pp) Limitation on Pilot Programs.--
 (1) Existing pilot programs.--The Administrator may 
 only carry out a covered pilot program that is in 
 operation on the date of enactment of this subsection 
 during the 3-year period beginning on such date of 
 enactment.
 (2) New pilot programs.--The Administrator may only 
 carry out a covered pilot program established after the 
 date of enactment of this subsection--
 (A) during the 3-year period beginning on the 
 date on which such program is established; and
 (B) if such program does not continue and is 
 not based on, in any manner, a previously 
 established covered pilot program.
 (3) Covered pilot program defined.--In this 
 subsection, the term ``covered pilot program'' means 
 any initiative, project, innovation, or other 
 activity--
 (A) established by the Administrator;
 (B) relating to an SBIR or STTR program; and
 (C) not specifically authorized by law.
 (qq) Minimum Standards for Participation.--
 (1) Progress to phase ii success.--
 (A) Establishment of system and minimum 
 commercialization rate.--Not later than 1 year 
 after the date of enactment of this subsection, 
 the head of each Federal agency participating 
 in the SBIR or STTR program shall--
 (i) establish a system to measure, 
 where appropriate, the success of small 
 business concerns with respect to the 
 receipt of Phase II SBIR or STTR awards 
 for projects that have received Phase I 
 SBIR or STTR awards;
 (ii) establish a minimum performance 
 standard for small business concerns 
 with respect to the receipt of Phase II 
 SBIR or STTR awards for projects that 
 have received Phase I SBIR or STTR 
 awards; and
 (iii) begin evaluating, each fiscal 
 year, whether each small business 
 concern that received a Phase I SBIR or 
 STTR award from the agency meets the 
 minimum performance standard 
 established under clause (ii).
 (B) Consequence of failure to meet minimum 
 commercialization rate.--If the head of a 
 Federal agency determines that a small business 
 concern that received a Phase I SBIR or STTR 
 award from the agency is not meeting the 
 minimum performance standard established under 
 subparagraph (A)(ii), such concern may not 
 participate in Phase I (or Phase II if under 
 the authority of subsection (cc)) of the SBIR 
 or STTR program of that agency during the 1-
 year period beginning on the date on which such 
 determination is made.
 (2) Progress to phase iii success.--
 (A) Establishment of system and minimum 
 commercialization rate.--Not later than 2 years 
 after the date of enactment of this subsection, 
 the head of each Federal agency participating 
 in the SBIR or STTR program shall--
 (i) establish a system to measure, 
 where appropriate, the success of small 
 business concerns with respect to the 
 receipt of Phase III SBIR or STTR 
 awards for projects that have received 
 Phase I SBIR or STTR awards;
 (ii) establish a minimum performance 
 standard for small business concerns 
 with respect to the receipt of Phase 
 III SBIR or STTR awards for projects 
 that have received Phase I SBIR or STTR 
 awards; and
 (iii) begin evaluating, each fiscal 
 year, whether each small business 
 concern that received a Phase I SBIR or 
 STTR award from the agency meets the 
 minimum performance standard 
 established under clause (ii).
 (B) Consequence of failure to meet minimum 
 commercialization rate.--If the head of a 
 Federal agency determines that a small business 
 concern that received a Phase I SBIR or STTR 
 award from the agency is not meeting the 
 minimum performance standard established under 
 subparagraph (A)(ii), such concern may not 
 participate in Phase I (or Phase II if under 
 the authority of subsection (cc)) of the SBIR 
 or STTR program of that agency during the 1-
 year period beginning on the date on which such 
 determination is made.
 (3) Increased minimum performance standards for 
 experienced firms.--
 (A) Progress to phase ii success.--
 (i) In general.--With respect to a 
 small business concern 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) Consequence of failure to meet 
 standard.--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 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.
 (iii) Covered period defined.--In 
 this subparagraph, the term ``covered 
 period'' means a consecutive period of 
 5 fiscal years preceding the most 
 recent fiscal year.
 (B) Progress to phase iii success.--
 (i) In general.--Each minimum 
 performance standard established under 
 paragraph (2)(A)(ii) 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; and
 (II) with respect to a small 
 business concern that received 
 or receives more than 100 Phase 
 II awards during a covered 
 period, require an average of 
 $450,000 of aggregate sales and 
 investments per Phase II award 
 received during such covered 
 period.
 (ii) Consequence of failure to meet 
 standard.--If the head of a Federal 
 agency 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.
 (iii) Documentation.--
 (I) In general.--A small 
 business concern that is 
 subject to an increased minimum 
 performance standard described 
 in clause (i) shall submit to 
 the Administrator supporting 
 documentation evidencing that 
 all covered sales of the small 
 business concern were properly 
 used to meet the increased 
 minimum performance standard.
 (II) Covered sale defined.--
 In this clause, the term 
 ``covered sale'' means a sale 
 by a small business concern--
 (aa) that the small 
 business concern claims 
 to be attributable to 
 an SBIR or STTR award;
 (bb) for which no 
 amount of the payment 
 was or is made using 
 Federal funds;
 (cc) which the small 
 business concern uses 
 to meet an applicable 
 increased minimum 
 performance standard 
 under clause (i); 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 sale to meet the 
 increased minimum 
 performance standard.
 (iv) Covered period defined.--In this 
 subparagraph, the term ``covered 
 period'' means a consecutive period of 
 10 fiscal years preceding the most 
 recent 2 fiscal years.
 (C) Patents for increased minimum performance 
 standards.--A small business concern with 
 respect to which an increased minimum 
 performance standard under subparagraph (B) 
 applies may not meet the increased minimum 
 performance standard by obtaining patents.
 (D) Effective date.--Subparagraphs (A) 
 through (C) shall take effect on April 1, 2023.
 (E) Waiver.--
 (i) In general.--The Administrator 
 may, upon the request of a senior 
 official of a Federal agency, grant a 
 waiver with respect to a topic for the 
 SBIR or STTR program of the Federal 
 agency if--
 (I) the topic is critical to 
 the mission of the Federal 
 agency or relates to national 
 security; and
 (II) the official submits to 
 the Administrator a request for 
 the waiver in accordance with 
 clause (iii).
 (ii) Waiver effects.--If the 
 Administration grants a waiver with 
 respect to a topic for the SBIR or STTR 
 program of a Federal agency, 
 subparagraphs (A)(ii) and (B)(ii) shall 
 not prohibit any covered small business 
 concern from receiving an SBIR or STTR 
 award under such topic.
 (iii) Agency request and 
 congressional notification.--Not later 
 than 15 days before the release of a 
 solicitation including a topic for 
 which a senior official of a Federal 
 agency 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) Administrator determination and 
 congressional notification.--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.
 (v) Definitions.--In this 
 subparagraph:
 (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 meet 
 an increased minimum 
 performance standard that was 
 applicable to such small 
 business concern.
 (II) 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) 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); or
 (II) an applicable increased 
 minimum performance standard.
 (ii) Waivers.--Each list submitted 
 under clause (i) shall identify each 
 small business concern that received an 
 SBIR or STTR award pursuant to a waiver 
 granted under subparagraph (E) by the 
 Administrator during the period covered 
 by the list.
 (iii) Confidentiality.--Each list 
 submitted under clause (i) shall be 
 confidential and exempt from disclosure 
 under section 552(b)(3) of title 5, 
 United States Code (commonly known as 
 the ``Freedom of Information Act'').
 (G) Implementation.--Not later than April 1, 
 2023, the Administration shall implement the 
 increased minimum performance standards under 
 this paragraph.
 (H) Rules of construction.--Nothing in this 
 paragraph shall be construed--
 (i) to prohibit a small business 
 concern from participating in a Phase I 
 (or Phase II if under the authority of 
 subsection (cc)) of an SBIR or STTR 
 program under paragraph (1)(B) or 
 (2)(B) solely on the basis of a 
 determination by the head of a Federal 
 agency that the small business concern 
 is not meeting an increased minimum 
 performance standard; or
 (ii) to prevent the head of a Federal 
 agency from implementing more 
 restrictive limitations on the number 
 of federally funded Phase I awards and 
 direct to Phase II awards under 
 subsection (cc) that may be awarded to 
 a small business concern than the 
 limitations described in subparagraphs 
 (A)(ii) and (B)(ii).
 (I) Termination.--This paragraph shall 
 terminate on September 30, 2025.
 (4) Administration oversight.--
 (A) Approval and publication of systems and 
 minimum performance standards.--Each system and 
 minimum performance standard established under 
 paragraph (1) or paragraph (2) shall be 
 submitted by the head of the applicable Federal 
 agency to the Administrator and shall be 
 subject to the approval of the Administrator. 
 In making a determination with respect to 
 approval, the Administrator shall ensure that 
 the minimum performance standard exceeds a de 
 minimis level. The Administrator shall publish 
 on the Internet Web site of the Administration 
 the systems and minimum performance standards 
 approved.
 (B) Submission of evaluation results by 
 agency.--The head of each covered Federal 
 agency shall submit to the Administrator the 
 results of each evaluation conducted under 
 paragraph (1) or paragraph (2).
 (5) Requirement of notice and comment.--Each system 
 and minimum performance standard established under 
 paragraph (1) or paragraph (2) and each approval 
 provided by the Administrator under paragraph (4)(A), 
 at least 60 days before becoming effective, shall be 
 preceded by the provision of notice of and an 
 opportunity for public comment on such system, 
 standard, or approval.
 (6) Inspector general audit.--Not later than 1 year 
 after the date on which the Administrator 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; and
 (II) as a direct result of a 
 Phase I award or Phase II award 
 made under subsection (cc) 
 during the covered period (as 
 defined in paragraph 
 (3)(B)(iv)), consistent with 
 the definition of Phase III, as 
 applicable;
 (ii) any third-party revenue the 
 small business concerns list as 
 investments or incomes to meet the 
 increased minimum performance 
 standard--
 (I) is a direct result of a 
 Phase I award or Phase II award 
 made under subsection (cc) 
 during the covered period (as 
 defined in paragraph 
 (3)(B)(iv)); and
 (II) consistent with the 
 requirements of the 
 Administrator as in effect on 
 September 30, 2022, or any 
 successor requirements; and
 (iii) any dollar amounts such small 
 business concerns list as investments 
 or income to meet such increased 
 minimum performance standard the 
 providence of which is unclear and that 
 is not directly attributable to a Phase 
 I award or Phase II award made under 
 subsection (cc) during the covered 
 period (as defined in paragraph 
 (3)(B)(iv)), consistent with the 
 definition of Phase III, as applicable;
 (B) assess the self-certification 
 requirements for the minimum performance 
 standards established under paragraph 
 (2)(A)(ii) and the increased minimum 
 performance standards under paragraph (3)(B); 
 and
 (C) submit to the Committee on Small Business 
 and Entrepreneurship of the Senate and the 
 Committee on Small Business and the Committee 
 on Science, Space, and Technology of the House 
 of Representatives a report on the audit 
 conducted under subparagraph (A) and the 
 assessment conducted under subparagraph (B).
 (7) Increased minimum performance standard defined.--
 In this subsection, the term ``increased minimum 
 performance standard'' means a minimum performance 
 standard established under paragraph (1)(A)(ii) or 
 (2)(A)(ii) as modified under subparagraph (A) or (B), 
 respectively, of paragraph (3) with respect to a small 
 business concern.
 (rr) Publication of Certain Information.--In order to 
increase the number of small businesses receiving awards under 
the SBIR or STTR programs of participating agencies, and to 
simplify the application process for such awards, the 
Administrator shall establish and maintain a public Internet 
Web site on which the Administrator shall publish such 
information relating to notice of and application for awards 
under the SBIR program and STTR program of each participating 
Federal agency as the Administrator determines appropriate.
 (ss) Report on Enhancement of Manufacturing Activities.--Not 
later than October 1, 2013, and annually thereafter, the head 
of each Federal agency that makes more than $50,000,000 in 
awards under the SBIR and STTR programs of the agency combined 
shall submit to the Administrator, for inclusion in the annual 
report required under subsection (b)(7), information that 
includes--
 (1) a description of efforts undertaken by the head 
 of the Federal agency to enhance United States 
 manufacturing activities;
 (2) a comprehensive description of the actions 
 undertaken each year by the head of the Federal agency 
 in carrying out the SBIR or STTR program of the agency 
 in support of Executive Order 13329 (69 Fed. Reg. 9181; 
 relating to encouraging innovation in manufacturing);
 (3) an assessment of the effectiveness of the actions 
 described in paragraph (2) at enhancing the research 
 and development of United States manufacturing 
 technologies and processes;
 (4) a description of efforts by vendors selected to 
 provide discretionary technical assistance under 
 subsection (q)(1) to help SBIR and STTR concerns 
 manufacture in the United States; and
 (5) recommendations that the program managers of the 
 SBIR or STTR program of the agency consider appropriate 
 for additional actions to increase the effectiveness of 
 enhancing manufacturing activities.
 (tt) Outstanding Reports and Evaluations.--
 (1) In general.--Not later than March 30, 2019, the 
 Administrator shall submit to the Committee on Small 
 Business and Entrepreneurship of the Senate, the 
 Committee on Small Business of the House of 
 Representatives, and the Committee on Science, Space, 
 and Technology of the House of Representatives--
 (A) each report, evaluation, or analysis, as 
 applicable, described in subsection (b)(7), 
 (g)(9), (o)(10), (y)(6)(C), (gg)(6), (jj)(6), 
 and (mm)(6); and
 (B) metrics regarding, and an evaluation of, 
 the authority provided to the National 
 Institutes of Health, the Department of 
 Defense, and the Department of Education under 
 subsection (cc).
 (2) Information required.--Not later than December 
 31, 2018, the head of each agency that is responsible 
 for carrying out a provision described in subparagraph 
 (A) or (B) of paragraph (1) shall submit to the 
 Administrator any information that is necessary for the 
 Administrator to carry out the responsibilities of the 
 Administrator under that paragraph.
 (uu) Commercialization Assistance Pilot Programs.--
 (1) Pilot programs implemented.--
 (A) In general.--Except as provided in 
 subparagraph (B), not later than one year after 
 the date of the enactment of this subsection, a 
 covered agency shall implement a 
 commercialization assistance pilot program, 
 under which an eligible entity may receive a 
 subsequent Phase II SBIR award.
 (B) Exception.--If the Administrator 
 determines that a covered agency has a program 
 that is sufficiently similar to the 
 commercialization assistance pilot program 
 established under this subsection, such covered 
 agency shall not be required to implement a 
 commercialization assistance pilot program 
 under this subsection.
 (2) Percent of agency funds.--The head of each 
 covered agency may allocate not more than 5 percent of 
 the funds allocated to the SBIR program of the covered 
 agency for the purpose of making a subsequent Phase II 
 SBIR award under the commercialization assistance pilot 
 program.
 (3) Termination.--A commercialization assistance 
 pilot program established under this subsection shall 
 terminate on September 30, 2025.
 (4) Application.--To be selected to receive a 
 subsequent Phase II SBIR award under a 
 commercialization assistance pilot program, an eligible 
 entity shall submit to the covered agency implementing 
 such pilot program an application at such time, in such 
 manner, and containing such information as the covered 
 agency may require, including--
 (A) an updated Phase II commercialization 
 plan; and
 (B) the source and amount of the matching 
 funding required under paragraph (5).
 (5) Matching funding.--
 (A) In general.--The Administrator shall 
 require, as a condition of any subsequent Phase 
 II SBIR award made to an eligible entity under 
 this subsection, that a matching amount 
 (excluding any fees collected by the eligible 
 entity receiving such award) equal to the 
 amount of such award be provided from an 
 eligible third-party investor.
 (B) Ineligible sources.--An eligible entity 
 may not use funding from ineligible sources to 
 meet the matching requirement of subparagraph 
 (A).
 (6) Award.--A subsequent Phase II SBIR award made to 
 an eligible entity under this subsection--
 (A) may not exceed the limitation described 
 under subsection (aa)(1); and
 (B) shall be disbursed during Phase II.
 (7) Use of funds.--The funds awarded to an eligible 
 entity under this subsection may only be used for 
 research and development activities that build on 
 eligible entity's Phase II program and ensure the 
 research funded under such Phase II is rapidly 
 progressing towards commercialization.
 (8) Selection.--In selecting eligible entities to 
 participate in a commercialization assistance pilot 
 program under this subsection, the head of a covered 
 agency shall consider--
 (A) the extent to which such award could aid 
 the eligible entity in commercializing the 
 research funded under the eligible entity's 
 Phase II program;
 (B) whether the updated Phase II 
 commercialization plan submitted under 
 paragraph (4) provides a sound approach for 
 establishing technical feasibility that could 
 lead to commercialization of such research;
 (C) whether the proposed activities to be 
 conducted under such updated Phase II 
 commercialization plan further improve the 
 likelihood that such research will provide 
 societal benefits;
 (D) whether the small business concern has 
 progressed satisfactorily in Phase II to 
 justify receipt of a subsequent Phase II SBIR 
 award;
 (E) the expectations of the eligible third-
 party investor that provides matching funding 
 under paragraph (5); and
 (F) the likelihood that the proposed 
 activities to be conducted under such updated 
 Phase II commercialization plan using matching 
 funding provided by such eligible third-party 
 investor will lead to commercial and societal 
 benefit.
 (9) Evaluation report.--Not later than 6 years after 
 the date of the enactment of this subsection, the 
 Comptroller General of the United States shall submit 
 to the Committee on Science, Space, and Technology and 
 the Committee on Small Business of the House of 
 Representatives, and the Committee on Small Business 
 and Entrepreneurship of the Senate, a report 
 including--
 (A) a summary of the activities of 
 commercialization assistance pilot programs 
 carried out under this subsection;
 (B) a detailed compilation of results 
 achieved by such commercialization assistance 
 pilot programs, including the number of 
 eligible entities that received awards under 
 such programs;
 (C) the rate at which each eligible entity 
 that received a subsequent Phase II SBIR award 
 under this subsection commercialized research 
 of the recipient;
 (D) the growth in employment and revenue of 
 eligible entities that is attributable to 
 participation in a commercialization assistance 
 pilot program;
 (E) a comparison of commercialization success 
 of eligible entities participating in a 
 commercialization assistance pilot program with 
 recipients of an additional Phase II SBIR award 
 under subsection (ff);
 (F) demographic information, such as 
 ethnicity and geographic location, of eligible 
 entities participating in a commercialization 
 assistance pilot program;
 (G) an accounting of the funds used at each 
 covered agency that implements a 
 commercialization assistance pilot program 
 under this subsection;
 (H) the amount of matching funding provided 
 by eligible third-party investors, set forth 
 separately by source of funding;
 (I) an analysis of the effectiveness of the 
 commercialization assistance pilot program 
 implemented by each covered agency; and
 (J) recommendations for improvements to the 
 commercialization assistance pilot program.
 (10) Definitions.--For purposes of this subsection:
 (A) Covered agency.--The term ``covered 
 agency'' means a Federal agency required to 
 have an SBIR program.
 (B) Eligible entity.--The term ``eligible 
 entity'' means a small business concern that 
 has received a Phase II award under an SBIR 
 program and an additional Phase II SBIR award 
 under subsection (ff) from the covered agency 
 to which such small business concern is 
 applying for a subsequent Phase II SBIR award.
 (C) Eligible third-party investor.--The term 
 ``eligible third-party investor'' means a small 
 business concern other than an eligible entity, 
 a venture capital firm, an individual investor, 
 a non-SBIR Federal, State or local government, 
 or any combination thereof.
 (D) Ineligible sources.--The term 
 ``ineligible sources'' means the following:
 (i) The eligible entity's internal 
 research and development funds.
 (ii) Funding in forms other than 
 cash, such as in-kind or other 
 intangible assets.
 (iii) Funding from the owners of the 
 eligible entity, or the family members 
 or affiliates of such owners.
 (iv) Funding attained through loans 
 or other forms of debt obligations.
 (E) Subsequent phase ii sbir award.--The term 
 ``subsequent Phase II SBIR award'' means an 
 award granted to an eligible entity under this 
 subsection to carry out further 
 commercialization activities for research 
 conducted pursuant to an SBIR program.
 (vv) Due Diligence Program to Assess Security Risks.--
 (1) Establishment.--The head of each Federal agency 
 required to establish an SBIR or STTR program, in 
 coordination with the Administrator, shall establish 
 and implement a due diligence program to assess 
 security risks presented by small business concerns 
 seeking a federally funded award.
 (2) Risks.--Each program established under paragraph 
 (1) shall--
 (A) assess, using a risk-based approach as 
 appropriate, the cybersecurity practices, 
 patent analysis, employee analysis, and foreign 
 ownership of a small business concern seeking 
 an award, including the financial ties and 
 obligations (which shall include surety, 
 equity, and debt obligations) of the small 
 business concern and employees of the small 
 business concern to a foreign country, foreign 
 person, or foreign entity; and
 (B) assess awards and proposals or 
 applications, as applicable, using a risk-based 
 approach as appropriate, including through the 
 use of open-source analysis and analytical 
 tools, for the nondisclosures of information 
 required under (g)(13).
 (3) Administrative costs.--
 (A) In general.--In addition to the amount 
 allocated under subsection (mm)(1), each 
 Federal agency required to establish an SBIR 
 program may allocate not more than 2 percent of 
 the funds allocated to the SBIR program of the 
 Federal agency for the cost of establishing the 
 due diligence program required under this 
 subsection.
 (B) Reporting.--
 (i) In general.--Not later than 
 December 31 of the year in which this 
 subparagraph is enacted, and not later 
 than December 31 of each year 
 thereafter, the head of a Federal 
 agency that exercises the authority 
 under subparagraph (A) shall submit to 
 the Committee on Small Business and the 
 Committee on Science, Space, and 
 Technology of the House of 
 Representatives, the Committee on Small 
 Business and Entrepreneurship of the 
 Senate, and the Administrator, for the 
 covered year--
 (I) the total funds allowed 
 to be allocated for the cost of 
 establishing the due diligence 
 program required under this 
 subsection;
 (II) the total amount of 
 funds obligated or expended 
 under subparagraph (A); and
 (III) the due diligence 
 activities carried out or to be 
 carried out using amounts 
 allocated under subparagraph 
 (A).
 (ii) Annual report inclusion.--The 
 Administrator shall include the 
 information submitted by head of a 
 Federal agency under clause (i) in the 
 next annual report submitted under 
 subsection (b)(7) after the 
 Administrator receives such 
 information.
 (iii) Covered year.--In this 
 subparagraph, the term ``covered year'' 
 means, with respect to the information 
 required under clause (i), the year 
 covered by the annual report submitted 
 under subsection (b)(7) in which the 
 Administrator is required to include 
 such information by clause (ii).
 (C) Termination date.--This paragraph shall 
 terminate on September 30, 2025.
 (ww) Program on Innovation Open Topics.--
 (1) Establishment.--Not 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;
 (B) expand the small business nontraditional 
 industrial base;
 (C) increase commercialization derived from 
 investments of the Department of Defense; and
 (D) expand the ability for qualifying small 
 business concerns to propose technology 
 solutions to meet the needs of the Department 
 of Defense.
 (2) Frequency.--The Secretary of Defense shall 
 conduct not less than 1 open topic announcement at each 
 component of the Department of Defense per fiscal year.
 (3) Briefing.--Not later than 180 days after 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; and
 (B) the Committee on Small Business, the 
 Committee on Armed Services, and the Committee 
 on Science, Space, and Technology of the House 
 of Representatives.
 (xx) Additional Provisions Relating to Solicitation Topics.--
 (1) In general.--A Federal agency 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.
 (2) Referral.--A Federal agency that does not comply 
 with paragraph (1) shall be referred to the Inspector 
 General of the Administration for further 
 investigation.

 * * * * * * *

 ---------- 

 TITLE 51, UNITED STATES CODE

 * * * * * * *
 
 SUBTITLE II--GENERAL PROGRAM AND 
 POLICY PROVISIONS

 CHAPTER 201--NATIONAL AERONAUTICS AND SPACE 
 PROGRAM

 * * * * * * *

 SUBCHAPTER II--COORDINATION OF AERONAUTICAL AND 
 SPACE ACTIVITIES

 * * * * * * *

Sec. 20113. Powers of the Administration in performance of functions

 (a) Rules and Regulations.--In the performance of its 
functions, the Administration is authorized to make, 
promulgate, issue, rescind, and amend rules and regulations 
governing the manner of its operations and the exercise of the 
powers vested in it by law.
 (b) Officers and Employees.--In the performance of its 
functions, the Administration is authorized to appoint and fix 
the compensation of officers and employees as may be necessary 
to carry out such functions. The officers and employees shall 
be appointed in accordance with the civil service laws and 
their compensation fixed in accordance with chapter 51 and 
subchapter III of chapter 53 of title 5, except that--
 (1) to the extent the Administrator deems such action 
 necessary to the discharge of the Administrator's 
 responsibilities, the Administrator may appoint not 
 more than 425 of the scientific, engineering, and 
 administrative personnel of the Administration without 
 regard to such laws, and may fix the compensation of 
 such personnel not in excess of the rate of basic pay 
 payable for level III of the Executive Schedule; and
 (2) to the extent the Administrator deems such action 
 necessary to recruit specially qualified scientific and 
 engineering talent, the Administrator may establish the 
 entrance grade for scientific and engineering personnel 
 without previous service in the Federal Government at a 
 level up to 2 grades higher than the grade provided for 
 such personnel under the General Schedule, and fix 
 their compensation accordingly.
 (c) Property.--In the performance of its functions, the 
Administration is authorized--
 (1) to acquire (by purchase, lease, condemnation, or 
 otherwise), construct, improve, repair, operate, and 
 maintain laboratories, research and testing sites and 
 facilities, aeronautical and space vehicles, quarters 
 and related accommodations for employees and dependents 
 of employees of the Administration, and such other real 
 and personal property (including patents), or any 
 interest therein, as the Administration deems necessary 
 within and outside the continental United States;
 (2) to acquire by lease or otherwise, through the 
 Administrator of General Services, buildings or parts 
 of buildings in the District of Columbia for the use of 
 the Administration for a period not to exceed 10 years 
 without regard to section 8141 of title 40;
 (3) to lease to others such real and personal 
 property;
 (4) to sell and otherwise dispose of real and 
 personal property (including patents and rights 
 thereunder) in accordance with the provisions of 
 chapters 1 to 11 of title 40 and in accordance with 
 title III of the Federal Property and Administrative 
 Services Act of 1949 (41 U.S.C. 251 et seq.); and
 (5) to provide by contract or otherwise for 
 cafeterias and other necessary facilities for the 
 welfare of employees of the Administration at its 
 installations and purchase and maintain equipment 
 therefor.
 (d) Gifts.--In the performance of its functions, the 
Administration is authorized to accept unconditional gifts or 
donations of services, money, or property, real, personal, or 
mixed, tangible or intangible.
 (e) Contracts, Leases, and Agreements.--In the performance of 
its functions, the Administration is authorized, without regard 
to subsections (a) and (b) of section 3324 of title 31, to 
enter into and perform such contracts, leases, cooperative 
agreements, or other transactions as may be necessary in the 
conduct of its work and on such terms as it may deem 
appropriate, with any agency or instrumentality of the United 
States, or with any State, territory, or possession, or with 
any political subdivision thereof, or with any person, firm, 
association, corporation, or educational institution. To the 
maximum extent practicable and consistent with the 
accomplishment of the purpose of this chapter, such contracts, 
leases, agreements, and other transactions shall be allocated 
by the Administrator in a manner which will enable small-
business concerns to participate equitably and proportionately 
in the conduct of the work of the Administration.
 (f) Cooperation With Federal Agencies and Others.-- [In the 
performance of its functions]
 (1) In general._In the performance of its functions, 
 the Administration is authorized to use, with their 
 consent, the services, equipment, personnel, and 
 facilities of Federal and other agencies with or 
 without reimbursement, and on a similar basis to 
 cooperate with other public and private agencies and 
 instrumentalities in the use of services, equipment, 
 and facilities. Each department and agency of the 
 Federal Government shall cooperate fully with the 
 Administration in making its services, equipment, 
 personnel, and facilities available to the 
 Administration, and any such department or agency is 
 authorized, notwithstanding any other provision of law, 
 to transfer to or to receive from the Administration, 
 without reimbursement, aeronautical and space vehicles, 
 and supplies and equipment other than administrative 
 supplies or equipment.
 (2) Treatment.--Funds available to any department or 
 agency of the Federal Government for scientific or 
 engineering research or education, or the provision of 
 facilities therefor, shall, subject to the approval of 
 the head of such department or agency or as delegated 
 pursuant to such department's or agency's regulation, 
 be available for transfer, in whole or in part, to the 
 Administration for such use as is consistent with the 
 purposes for which such funds were appropriated. Funds 
 so transferred shall be merged with the appropriation 
 to which transferred, except that such transferred 
 funds shall be limited to the awarding of grants or 
 cooperative agreements for scientific or engineering 
 research or education.
 (g) Advisory Committees.--In the performance of its 
functions, the Administration is authorized to appoint such 
advisory committees as may be appropriate for purposes of 
consultation and advice to the Administration and Congress .
[Effective September 30, 2028, section 802(b) of H.R. 8958 (as 
reported) provides for an amendment to section 20113(g) by 
striking the phrase ``and Congress''. Upon such date, 
subsection (g) (as so amended by section 802(a) of H.R. 8958 
(as reported)) is amended as follows:]
 (g) Advisory Committees.--In the performance of its 
functions, the Administration is authorized to appoint such 
advisory committees as may be appropriate for purposes of 
consultation and advice to the Administration [and Congress].
 (h) Offices and Procedures.--In the performance of its 
functions, the Administration is authorized to establish within 
the Administration such offices and procedures as may be 
appropriate to provide for the greatest possible coordination 
of its activities under this chapter with related scientific 
and other activities being carried on by other public and 
private agencies and organizations.
 (i) Temporary or Intermittent Services of Experts or 
Consultants.--In the performance of its functions, the 
Administration is authorized to obtain services as provided by 
section 3109 of title 5, but at rates for individuals not to 
exceed the per diem rate equivalent to the maximum rate payable 
under section 5376 of title 5.
 (j) Aliens.--In the performance of its functions, the 
Administration is authorized, when determined by the 
Administrator to be necessary, and subject to such security 
investigations as the Administrator may determine to be 
appropriate, to employ aliens without regard to statutory 
provisions prohibiting payment of compensation to aliens.
 (k) Concessions for Visitors' Facilities.--
 (1) In general.--In the performance of its functions, 
 the Administration is authorized to provide by 
 concession, without regard to section 1302 of title 40, 
 on such terms as the Administrator may deem to be 
 appropriate and necessary to protect the concessioner 
 against loss of the concessioner's investment in 
 property (but not anticipated profits) resulting from 
 the Administration's discretionary acts and decisions, 
 for the construction, maintenance, and operation of all 
 manner of facilities and equipment for visitors to the 
 several installations of the Administration and, in 
 connection therewith, to provide services incident to 
 the dissemination of information concerning its 
 activities to such visitors, without charge or with a 
 reasonable charge therefor (with this authority being 
 in addition to any other authority that the 
 Administration may have to provide facilities, 
 equipment, and services for visitors to its 
 installations).
 (2) Public notice and due consideration of 
 proposals.--A concession agreement under this 
 subsection may be negotiated with any qualified 
 proposer following due consideration of all proposals 
 received after reasonable public notice of the 
 intention to contract.
 (3) Reasonable opportunity for profit.--The 
 concessioner shall be afforded a reasonable opportunity 
 to make a profit commensurate with the capital invested 
 and the obligations assumed. The consideration paid by 
 the concessioner for the concession shall be based on 
 the probable value of the opportunity and not on 
 maximizing revenue to the United States.
 (4) Records and access to records.--Each concession 
 agreement shall specify the manner in which the 
 concessioner's records are to be maintained, and shall 
 provide for access to the records by the Administration 
 and the Comptroller General of the United States for a 
 period of 5 years after the close of the business year 
 to which the records relate.
 (5) Possessory interests.--A concessioner may be 
 accorded a possessory interest, consisting of all 
 incidents of ownership except legal title (which shall 
 vest in the United States), in any structure, fixture, 
 or improvement the concessioner constructs or locates 
 upon land owned by the United States. With the approval 
 of the Administration, such possessory interest may be 
 assigned, transferred, encumbered, or relinquished by 
 the concessioner, and, unless otherwise provided by 
 contract, shall not be extinguished by the expiration 
 or other termination of the concession and may not be 
 taken for public use without just compensation.
 (l) Detailing Members of Armed Forces.--In the performance of 
its functions, the Administration is authorized, with the 
approval of the President, to enter into cooperative agreements 
under which members of the Army, Navy, Air Force, Marine Corps, 
and Space Force may be detailed by the appropriate Secretary 
for services in the performance of functions under this chapter 
to the same extent as that to which they might be lawfully 
assigned in the Department of Defense.
 (m) Claims Against the United States.--In the performance of 
its functions, the Administration is authorized--
 (1) to consider, ascertain, adjust, determine, 
 settle, and pay, on behalf of the United States, in 
 full satisfaction thereof, any claim for $25,000 or 
 less against the United States for bodily injury, 
 death, or damage to or loss of real or personal 
 property resulting from the conduct of the 
 Administration's functions as specified in section 
 20112(a) of this title, where such claim is presented 
 to the Administration in writing within 2 years after 
 the accident or incident out of which the claim arises; 
 and
 (2) if the Administration considers that a claim in 
 excess of $25,000 is meritorious and would otherwise be 
 covered by this subsection, to report the facts and 
 circumstances to Congress for its consideration.
 (n) Identification of Government Astronauts.--For purposes of 
a license issued or transferred by the Secretary of 
Transportation under chapter 509 to launch a launch vehicle or 
to reenter a reentry vehicle carrying a government astronaut 
(as defined in section 50902), the Administration shall 
designate a government astronaut in accordance with 
requirements prescribed by the Administration.
 (o) Public-Private Talent Program.--
 (1) Assignment authority.--Under policies and 
 procedures prescribed by the Administration, the 
 Administrator may, with the agreement of a private 
 sector entity and the consent of an employee of the 
 Administration or of such entity, arrange for the 
 temporary assignment of such employee of the 
 Administration to such private sector entity, or of 
 such employee of such entity to the Administration, as 
 the case may be.
 (2) Agreements.--
 (A) In general.--The Administrator shall 
 provide for a written agreement among the 
 Administration, the private sector entity, and 
 the employee concerned regarding the terms and 
 conditions of the employee's assignment under 
 this subsection. The agreement shall--
 (i) require that the employee of the 
 Administration, upon completion of the 
 assignment, will serve in the 
 Administration, or elsewhere in the 
 civil service if approved by the 
 Administrator, for a period equal to 
 twice the length of the assignment;
 (ii) provide that if the employee of 
 the Administration or of the private 
 sector entity (as the case may be) 
 fails to carry out the agreement, such 
 employee shall be liable to the United 
 States for payment of all expenses of 
 the assignment, unless such failure was 
 for good and sufficient reason, as 
 determined by the Administrator; and
 (iii) contain language ensuring that 
 such employee of the Administration or 
 of the private sector entity (as the 
 case may be) does not improperly use 
 predecisional or draft deliberative 
 information that such employee may be 
 privy to or aware of related to 
 Administration programing, budgeting, 
 resourcing, acquisition, or procurement 
 for the benefit or advantage of the 
 private sector entity.
 (B) Treatment.--An amount for which an 
 employee is liable under subparagraph (A) shall 
 be treated as a debt due the United States.
 (C) Waiver.--The Administrator may waive, in 
 whole or in part, collection of a debt 
 described in subparagraph (B) based on a 
 determination that the collection would be 
 against equity and good conscience and not in 
 the best interests of the United States, after 
 taking into account any indication of fraud, 
 misrepresentation, fault, or lack of good faith 
 on the part of the employee concerned.
 (3) Termination.--An assignment under this section 
 may, at any time and for any reason, be terminated by 
 the Administration or the private-sector entity 
 concerned, as the case may be.
 (4) Duration.--
 (A) In general.--An assignment under this 
 subsection shall be for a period of not less 
 than three months and not more than two years, 
 renewable up to a total of three years. An 
 employee of the Administration may not be 
 assigned under this subsection for more than a 
 total of three years inclusive of all such 
 assignments.
 (B) Extension.--An assignment under this 
 subsection may be for a period in excess of two 
 years, but not more than three years, if the 
 Administrator determines that such assignment 
 is necessary to meet critical mission or 
 program requirements.
 (5) Policies and procedures.--
 (A) In general.--The Administrator shall 
 establish policies and procedures relating to 
 assignments under this subsection.
 (B) Elements.--Policies and procedures 
 established pursuant to subparagraph (A) shall 
 address the following:
 (i) The nature and elements of 
 written agreements with participants in 
 assignments under this subsection.
 (ii) Criteria for making such 
 assignments, including the needs of the 
 Administration relating thereto.
 (iii) How the Administration will 
 oversee such assignments, in particular 
 with respect to paragraphs (2)(A)(iii), 
 (7)(C), and (7)(D).
 (iv) Criteria for issuing waivers.
 (v) How expenses under paragraph 
 (2)(A)(ii) would be determined.
 (vi) Guidance for participants in 
 such assignments.
 (vii) Mission Directorate, Office, 
 and organizational structure to 
 implement and manage such assignments.
 (viii) Any other necessary policies, 
 procedures, or guidelines to ensure 
 such assignments comply with all 
 relevant statutory authorities and 
 ethics rules, and effectively 
 contribute to one or more of the 
 Administration's missions.
 (C) Inherently governmental activities.--
 Assignments made under this subsection shall 
 not have responsibilities or perform duties or 
 decision making regarding Administration 
 activities that are inherently governmental, 
 pursuant to subpart 7.500 of title 48, Code of 
 Federal Regulations, and Office of Management 
 and Budget review.
 (6) Status of federal employees assigned to private 
 sector entities.--
 (A) In general.--An employee of the 
 Administration who is assigned to a private 
 sector entity under this subsection shall be 
 considered, during the period of such 
 assignment, to be on detail to a regular work 
 assignment in the Administration for all 
 purposes. The written agreement established 
 under paragraph (2)(A) shall address the 
 specific terms and conditions related to such 
 employee's continued status as a Federal 
 employee.
 (B) Certification.--In establishing a 
 temporary assignment of an employee of the 
 Administration to a private sector entity, the 
 Administrator shall certify that such temporary 
 assignment shall not have an adverse or 
 negative impact on the mission of the 
 Administration or organizational capabilities 
 associated with such assignment.
 (7) Terms and conditions for private sector 
 employees.--An employee of a private sector entity who 
 is assigned to the Administration under this 
 subsection--
 (A) shall continue to receive pay and 
 benefits from the private sector entity from 
 which such employee is assigned and shall not 
 receive pay or benefits from the 
 Administration, except as provided in 
 subparagraph (B);
 (B) is deemed to be an employee of the 
 Administration for the purposes of--
 (i) chapters 73 and 81 of title 5;
 (ii) sections 201, 203, 205, 207, 
 208, 209, 603, 606, 607, 643, 654, 
 1905, and 1913 of title 18, except that 
 such section 209 does not apply to any 
 salary, or contribution or 
 supplementation of salary made pursuant 
 to subparagraph (A) of this paragraph;
 (iii) sections 1343, 1344, and 
 1349(b) of title 31;
 (iv) the Federal Tort Claims Act and 
 any other Federal tort liability 
 statute;
 (v) the Ethics in Government Act of 
 1978; and
 (vi) chapter 21 of title 41;
 (C) shall not have access to any trade 
 secrets or any other nonpublic information 
 which is of commercial value to the private 
 sector entity from which such employee is 
 assigned;
 (D) may not perform work that is considered 
 inherently governmental in nature, in 
 accordance with paragraph (5)(C); and
 (E) may not be used to circumvent--
 (i) section 1710 of title 41, United 
 States Code; or
 (ii) any limitation or restriction on 
 the size of the Administration's civil 
 servant workforce.
 (8) Additional requirements.--The Administrator shall 
 ensure that--
 (A) the normal duties and functions of an 
 employee of the Administration who is assigned 
 to a private sector entity under this 
 subsection can be reasonably performed by other 
 employees of the Administration without the 
 permanent transfer or reassignment of other 
 personnel of the Administration;
 (B) normal duties and functions of such other 
 employees of the Administration are not, as a 
 result of and during the course of such 
 temporary assignment, performed or augmented by 
 contractor personnel in violation of section 
 1710 of title 41; and
 (C) not more than two percent of the 
 Administration's civil servant workforce may 
 participate in an assignment under this 
 subsection at the same time.
 (9) Conflicts of interest.--The Administrator shall 
 implement a system to identify, mitigate, and manage 
 any conflicts of interests that may arise as a result 
 of an employee's assignment under this subsection.
 (10) Prohibition against charging certain costs to 
 the federal government.--A private-sector entity may 
 not charge the Administration or any other agency of 
 the Federal Government, as direct or indirect costs 
 under a Federal contract, the costs of pay or benefits 
 paid by the entity to an employee assigned to the 
 Administration under this subsection for the period of 
 the assignment concerned.
 (11) Considerations.--In carrying out this 
 subsection, the Administrator shall take into 
 consideration--
 (A) the question of how assignments under 
 this subsection might best be used to help meet 
 the needs of the Administration with respect to 
 the training of employees; and
 (B) where applicable, areas of particular 
 private sector expertise, such as 
 cybersecurity.
 (12) NASA reporting.--
 (A) In general.--Not later than April 30 of 
 each year, the Administrator shall submit to 
 the Committee on Science, Space, and Technology 
 of the House of Representatives and the 
 Committee on Commerce, Science, and 
 Transportation of the Senate a report 
 summarizing the implementation of this 
 subsection.
 (B) Contents.--Each report under subparagraph 
 (A) shall include, with respect to the annual 
 period to which such report relates, the 
 following:
 (i) Information relating to the total 
 number of employees of private sector 
 entities assigned to the 
 Administration, and the total number of 
 employees of the Administration 
 assigned to private sector entities.
 (ii) A brief description and 
 assessment of the talent management 
 benefits evidenced from such 
 assignments, as well as any identified 
 strategic human capital and operational 
 challenges, including the following:
 (I) An identification of the 
 names of the private sector 
 entities to and from which 
 employees were assigned.
 (II) A complete listing of 
 positions such employees were 
 assigned to and from.
 (III) An identification of 
 assigned roles and objectives 
 of such assignments.
 (IV) Information relating to 
 the durations of such 
 assignments.
 (V) Information relating to 
 associated pay grades and 
 levels.
 (iii) An assessment of impacts of 
 such assignments on the Administration 
 workforce and workforce culture.
 (iv) An identification of the number 
 of Administration staff and budgetary 
 resources required to implement this 
 subsection.
 (13) Federal ethics.--Nothing in this subsection 
 shall affect existing Federal ethics rules applicable 
 to Federal personnel.
 (14) GAO reporting.--
 (A) In general.--Not later than three years 
 after the date of the enactment of this 
 subsection, the Comptroller General of the 
 United States shall submit to the Committee on 
 Science, Space, and Technology of the House of 
 Representatives and the Committee on Commerce, 
 Science, and Transportation of the Senate a 
 report summarizing the implementation of this 
 subsection.
 (B) Contents.--The report under subparagraph 
 (A) shall include the following:
 (i) A review of the implementation of 
 this subsection, according to law and 
 the Administration policies and 
 procedures established for assignments 
 under this subsection.
 (ii) Information relating to the 
 extent to which such assignments adhere 
 to best practices relating to public-
 private talent exchange programs.
 (iii) A determination as to whether 
 there should be limitations on the 
 number of individuals participating in 
 such assignments.
 (iv) Information relating to the 
 extent to which the Administration 
 complies with statutory requirements 
 and ethics rules, and appropriately 
 handles potential conflicts of interest 
 and access to nonpublic information 
 with respect to such assignments.
 (v) Information relating to the 
 extent to which such assignments 
 effectively contribute to one or more 
 of the Administration's missions.
 (vi) Information relating to 
 Administration resources, including 
 employee time, dedicated to 
 administering such assignments, and 
 whether such resources are sufficient 
 for such administration.

 * * * * * * *

 CHAPTER 203--RESPONSIBILITIES AND VISION

 * * * * * * *

Sec. 20305. National Academies decadal surveys

 (a) In General.--The Administrator shall enter into 
agreements on a periodic basis with the National Academies for 
independent assessments, also known as decadal surveys, to take 
stock of the status and opportunities for Earth and space 
science discipline fields and Aeronautics research and to 
recommend priorities for research and programmatic areas over 
the next decade.
 (b) Independent Cost Estimates.--The agreements described in 
subsection (a) shall include independent estimates of the life 
cycle costs and technical readiness of missions assessed in the 
decadal surveys whenever possible.
 (c) Reexamination.--The Administrator shall request that each 
National Academies decadal survey committee identify any 
conditions or events, such as significant cost growth, 
significant changes to the NASA budget or scientific or 
technological advances, that would warrant the Administration 
asking the National Academies to reexamine the priorities that 
the decadal survey had established.

 CHAPTER 301--APPROPRIATIONS, BUDGETS, AND 
 ACCOUNTING

 * * * * * * *

Sec. 30104. Baselines and cost controls

 (a) Definitions.--In this section:
 (1) Development.--The term ``development'' means the 
 phase of a program following the formulation phase and 
 beginning with the approval to proceed to 
 implementation, as defined in the Administration's 
 Procedural Requirements [7120.5E, dated August 14, 
 2012] 7120.5F, dated August 3, 2021 .
 (2) Development cost.--The term ``development cost'' 
 means the total of all costs, including construction of 
 facilities and civil servant costs, from the period 
 beginning with the approval to proceed to 
 implementation through the achievement of operational 
 readiness, without regard to funding source or 
 management control, for the life of the program.
 (3) Life-cycle cost.--The term ``life-cycle cost'' 
 means the total of the direct, indirect, recurring, and 
 nonrecurring costs, including the construction of 
 facilities and civil servant costs, and other related 
 expenses incurred or estimated to be incurred in the 
 design, development, verification, production, 
 operation, maintenance, support, and retirement of a 
 program over its planned lifespan, without regard to 
 funding source or management control.
 (4) Major program.--The term ``major program'' means 
 an activity approved to proceed to implementation that 
 has an estimated life-cycle cost of more than 
 $250,000,000.
 (b) Conditions for Development.--
 (1) In general.--The Administration shall not enter 
 into a contract for the development of a major program 
 unless the Administrator determines that--
 (A) the technical, cost, and schedule risks 
 of the program are clearly identified and the 
 program has developed a plan to manage those 
 risks;
 (B) the technologies required for the program 
 have been demonstrated in a relevant laboratory 
 or test environment; and
 (C) the program complies with all relevant 
 policies, regulations, and directives of the 
 Administration.
 (2) Report.--The Administrator shall transmit a 
 report describing the basis for the determination 
 required under paragraph (1) to the Committee on 
 Science and Technology of the House of Representatives 
 and the Committee on Commerce, Science, and 
 Transportation of the Senate at least 30 days before 
 entering into a contract for development under a major 
 program.
 (3) Nondelegation.--The Administrator may not 
 delegate the determination requirement under this 
 subsection, except in cases in which the Administrator 
 has a conflict of interest.
 (c) Major Program Annual Reports.--
 (1) Requirement.--Annually, at the same time as the 
 President's annual budget submission to Congress, the 
 Administrator shall transmit to the Committee on 
 Science and Technology of the House of Representatives 
 and the Committee on Commerce, Science, and 
 Transportation of the Senate a report that includes the 
 information required by this section for each major 
 program for which the Administration proposes to expend 
 funds in the subsequent fiscal year. Reports under this 
 paragraph shall be known as Major Program Annual 
 Reports.
 (2) Baseline report.--The first Major Program Annual 
 Report for each major program shall include a Baseline 
 Report that shall, at a minimum, include--
 (A) the purposes of the program and key 
 technical characteristics necessary to fulfill 
 those purposes;
 (B) an estimate of the life-cycle cost for 
 the program, with a detailed breakout of the 
 development cost, program reserves, and an 
 estimate of the annual costs until development 
 is completed;
 (C) the schedule for development, including 
 key program milestones;
 (D) the plan for mitigating technical, cost, 
 and schedule risks identified in accordance 
 with subsection (b)(1)(A); and
 (E) the name of the person responsible for 
 making notifications under subsection (d), who 
 shall be an individual whose primary 
 responsibility is overseeing the program.
 (3) Information updates.--For major programs for 
 which a Baseline Report has been submitted, each 
 subsequent Major Program Annual Report shall describe 
 any changes to the information that had been provided 
 in the Baseline Report, and the reasons for those 
 changes.
 (d) Notification.--
 (1) Requirement.--The individual identified under 
 subsection (c)(2)(E) shall immediately notify the 
 Administrator any time that individual has reasonable 
 cause to believe that, for the major program for which 
 he or she is responsible--
 (A) the development cost of the program is 
 likely to exceed the estimate provided in the 
 Baseline Report of the program by 15 percent or 
 more; or
 (B) a milestone of the program is likely to 
 be delayed by 6 months or more from the date 
 provided for it in the Baseline Report of the 
 program.
 (2) Reasons.--Not later than 30 days after the 
 notification required under paragraph (1), the 
 individual identified under subsection (c)(2)(E) shall 
 transmit to the Administrator a written notification 
 explaining the reasons for the change in the cost or 
 milestone of the program for which notification was 
 provided under paragraph (1).
 (3) Notification of congress.--Not later than 15 days 
 after the Administrator receives a written notification 
 under paragraph (2), the Administrator shall transmit 
 the notification to the Committee on Science and 
 Technology of the House of Representatives and the 
 Committee on Commerce, Science, and Transportation of 
 the Senate.
 (e) Fifteen Percent Threshold.--
 (1) Determination, report, and initiation of 
 analysis.--Not later than 30 days after receiving a 
 written notification under subsection (d)(2), the 
 Administrator shall determine whether the development 
 cost of the program is likely to exceed the estimate 
 provided in the Baseline Report of the program by 15 
 percent or more, or whether a milestone is likely to be 
 delayed by 6 months or more. If the determination is 
 affirmative, the Administrator shall--
 (A) transmit to the Committee on Science and 
 Technology of the House of Representatives and 
 the Committee on Commerce, Science, and 
 Transportation of the Senate, not later than 15 
 days after making the determination, a report 
 that includes--
 (i) a description of the increase in 
 cost or delay in schedule and a 
 detailed explanation for the increase 
 or delay;
 (ii) a description of actions taken 
 or proposed to be taken in response to 
 the cost increase or delay; and
 (iii) a description of any impacts 
 the cost increase or schedule delay, or 
 the actions described under clause 
 (ii), will have on any other program 
 within the Administration; and
 (B) if the Administrator intends to continue 
 with the program, promptly initiate an analysis 
 of the program, which shall include, at a 
 minimum--
 (i) the projected cost and schedule 
 for completing the program if current 
 requirements of the program are not 
 modified;
 (ii) the projected cost and the 
 schedule for completing the program 
 after instituting the actions described 
 under subparagraph (A)(ii); and
 (iii) a description of, and the 
 projected cost and schedule for, a 
 broad range of alternatives to the 
 program.
 (2) Completion of analysis and transmittal to 
 committees.--The Administration shall complete an 
 analysis initiated under paragraph (1)(B) not later 
 than 6 months after the Administrator makes a 
 determination under this subsection. The Administrator 
 shall transmit the analysis to the Committee on Science 
 and Technology of the House of Representatives and 
 Committee on Commerce, Science, and Transportation of 
 the Senate not later than 30 days after its completion.
 (f) Thirty Percent Threshold.--If the Administrator 
determines under subsection (e) that the development cost of a 
program will exceed the estimate provided in the Baseline 
Report of the program by more than 30 percent, then, beginning 
18 months after the date the Administrator transmits a report 
under subsection (e)(1)(A), the Administrator shall not expend 
any additional funds on the program, other than termination 
costs, unless Congress has subsequently authorized continuation 
of the program by law. An appropriation for the specific 
program enacted subsequent to a report being transmitted shall 
be considered an authorization for purposes of this subsection. 
If the program is continued, the Administrator shall submit a 
new Baseline Report for the program no later than 90 days after 
the date of enactment of the Act under which Congress has 
authorized continuation of the program.

 * * * * * * *

 SUBTITLE III--ADMINISTRATIVE PROVISIONS

 * * * * * * *

 CHAPTER 303--CONTRACTING AND PROCUREMENT

 * * * * * * *

Sec. 30307. Requirement for independent cost [analysis] estimate

 (a) Definition of Implementation.--In this section, the term 
``implementation'' means all activity in the life cycle of a 
project after preliminary design, independent assessment of the 
preliminary design, and approval to proceed into 
implementation, including critical design, development, 
certification, launch, operations, disposal of assets, and, for 
technology programs, development, testing, analysis, and 
communication of the results.
 (b) Requirement.-- [Before any funds may be obligated for 
implementation] After the Administrator completes the 
preliminary design review of a project that is projected to 
cost more than $250,000,000 in total project costs, the 
Administrator shall conduct and consider an independent life-
cycle cost [analysis] estimate of the project and shall report 
the results to Congress. No funds may be obligated for 
implementation of the project before the Administrator reports 
the results of the life-cycle cost estimate to Congress. In 
developing cost accounting and reporting standards for carrying 
out this section, the Administrator shall, to the extent 
practicable and consistent with other laws, solicit the advice 
of experts outside of the Administration.

 * * * * * * *

 SUBTITLE IV--AERONAUTICS AND SPACE
 RESEARCH AND EDUCATION

 CHAPTER 403--NATIONAL SPACE GRANT COLLEGE AND 
 FELLOWSHIP PROGRAM

 * * * * * * *

Sec. 40303. National space grant college and fellowship program

 (a) Establishment.--The Administrator shall establish and 
maintain, within the Administration, a program to be known as 
the national space grant college and fellowship program. The 
national space grant college and fellowship program shall 
consist of the financial assistance and other activities 
provided for in this chapter. The Administrator shall establish 
long-range planning guidelines and priorities, and adequately 
evaluate the program.
 (b) Functions.--Within the Administration, the program 
shall--
 (1) apply the long-range planning guidelines and the 
 priorities established by the Administrator under 
 subsection (a);
 (2) advise the Administrator with respect to the 
 expertise and capabilities which are available through 
 the national space grant college and fellowship 
 program, and make such expertise available to the 
 Administration as directed by the Administrator;
 (3) evaluate activities conducted under grants and 
 contracts awarded pursuant to sections 40304 and 40305 
 of this title to ensure that the purposes set forth in 
 section 40301 of this title are implemented;
 (4) encourage other Federal departments, agencies, 
 and instrumentalities to use and take advantage of the 
 expertise and capabilities which are available through 
 the national space grant college and fellowship 
 program, on a cooperative or other basis;
 (5) encourage cooperation and coordination with other 
 Federal programs concerned with the development of 
 space resources and fields related to space;
 (6) advise the Administrator on the designation of 
 recipients supported by the national space grant 
 college and fellowship program and, in appropriate 
 cases, on the termination or suspension of any such 
 designation; and
 (7) encourage the formation and growth of space grant 
 and fellowship programs.
 (c) General Authorities.--To carry out the provisions of this 
chapter, the Administrator may--
 (1) accept conditional or unconditional gifts or 
 donations of services, money, or property, real, 
 personal or mixed, tangible or intangible;
 (2) accept and use funds from other Federal 
 departments, agencies, and instrumentalities to pay for 
 fellowships, grants, contracts, and other transactions; 
 and
 (3) issue such rules and regulations as may be 
 necessary and appropriate.
 [(d) Program Administration Costs.--In carrying out the 
provisions of this chapter, the Administrator--
 [(1) shall maximize appropriated funds for grants and 
 contracts made under section 40304 in each fiscal year; 
 and
 [(2) in each fiscal year, the Administrator shall 
 limit its program administration costs to no more than 
 5 percent of funds appropriated for this program for 
 that fiscal year.
 [(e) Reports.--For any fiscal year in which the Administrator 
cannot meet the administration cost target under subsection 
(d)(2), if the Administration is unable to limit program costs 
under subsection (b), the Administrator shall submit to the 
appropriate committees of Congress a report, including--
 [(1) a description of why the Administrator did not 
 meet the cost target under subsection (d); and
 [(2) the measures the Administrator will take in the 
 next fiscal year to meet the cost target under 
 subsection (d) without drawing upon other Federal 
 funding.]

Sec. 40304. Grants or contracts

 (a) Authority of Administrator.--The Administrator may make 
grants and enter into contracts or other transactions under 
this subsection to assist any space grant and fellowship 
program or project if the Administrator finds that the program 
or project will carry out the purposes set forth in section 
40301 of this title. The total amount paid pursuant to a grant 
or contract may equal not more than 66 percent of the total 
cost of the space grant and fellowship program or project 
involved, except in the case of grants or contracts paid for 
with funds accepted by the Administrator pursuant to section 
40303(c)(2) of this title.
 (b) Special Grants.--The Administrator may make special 
grants under this subsection to carry out the purposes set 
forth in section 40301 of this title. The amount of a special 
grant may equal up to 100 percent of the total cost of the 
project involved. A special grant may be made under this 
subsection only if the Administrator finds that--
 (1) no reasonable means is available through which 
 the applicant can meet the matching requirement for a 
 grant under subsection (a);
 (2) the probable benefit of the project outweighs the 
 public interest in the matching requirement; and
 (3) the same or equivalent benefit cannot be obtained 
 through the award of a contract or grant under 
 subsection (a) or section 40305 of this title.
 [(c) Application.--Any person may apply to the Administrator 
for a grant or contract under this section. Application shall 
be made in such form and manner, and with such content and 
other submissions, as the Administrator shall by regulation 
prescribe.]
 (c) Solicitations.--
 (1) In general.--The Administrator shall issue a 
 solicitation from space grant consortia for the award 
 of grants or contracts under this section at the 
 conclusion of the award cycle for fiscal Year 2020 to 
 2024. The Administrator shall implement the allocation 
 guidance from section 40304(e) during each fiscal year 
 covered by the award cycle.
 (2) Proposals.--A lead institution of a space grant 
 consortium that seeks a grant or contract under this 
 section shall submit, on behalf of such space grant 
 consortium, an application to the Administrator at such 
 time and in such manner and accompanied by such 
 information as the Administrator may require.
 (3) Awards.--The Administrator shall award 1 or more 
 multi-year grants or contracts, disbursed in annual 
 installments, to the lead institution of an eligible 
 space grant consortium of--
 (A) each of the 50 States of the United 
 States;
 (B) the District of Columbia; and
 (C) the Commonwealth of Puerto Rico.
 (d) Terms and Conditions.--
 (1) In general.--Any