The Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3774 To amend the Small Business Act to improve the Small Business Innovation Research program and Small Business Technology Transfer program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 16, 2019 Mr. BAIRD (for himself, Ms. STEVENS, Mr. BURCHETT, and Mr. CROW) intro- duced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Tech- nology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To amend the Small Business Act to improve the Small Business Innovation Research program and Small Busi- ness Technology Transfer program, and for other pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘The Small Business Innovation Research and Small 5 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3774 IH Business Technology Transfer Improvements Act of 1 2019’’. 2 (b) TABLE OF CONTENTS.—The table of contents for 3 this Act is as follows: 4 Sec. 1. Short title; table of contents. Sec. 2. Requiring insertion incentives. Sec. 3. Additional SBIR and STTR technology insertion reporting requirement. Sec. 4. Encouraging innovation in United States manufacturing. Sec. 5. Encouraging innovation in cybersecurity. Sec. 6. Compliance of Phase III awards with competitive procedures. Sec. 7. Procurement center representatives and other acquisition personnel in the SBIR and STTR programs. Sec. 8. Increased outreach requirements. Sec. 9. Annual meeting. Sec. 10. Establishing the Civilian Agency Commercialization Readiness Pro- gram. Sec. 11. Commercialization assistance pilot programs. Sec. 12. Phase 0 Proof of Concept Partnership Pilot Program. Sec. 13. Reporting requirements. Sec. 14. SBIR Phase flexibility. SEC. 2. REQUIRING INSERTION INCENTIVES. 5 Section 9(y)(5) of the Small Business Act (15 U.S.C. 6 638(y)(5)) is amended by striking ‘‘is authorized to’’ and 7 inserting ‘‘shall’’. 8 SEC. 3. ADDITIONAL SBIR AND STTR TECHNOLOGY INSER- 9 TION REPORTING REQUIREMENT. 10 Section 9(y)(6) of the Small Business Act (15 U.S.C. 11 638(y)(6)) is amended— 12 (1) in subparagraph (B), by striking ‘‘and’’ at 13 the end; 14 (2) in subparagraph (C)(iii), by striking the pe- 15 riod at the end and inserting ‘‘; and’’; and 16 (3) by adding at the end the following new sub- 17 paragraph: 18 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3774 IH ‘‘(D) not later than 120 days after the 1 date of the enactment of this subparagraph, 2 and not later than December 31 of each year 3 thereafter, submit to the Committee on Science, 4 Space, and Technology and the Committee on 5 Small Business of the House of Representa- 6 tives, and to the Committee on Small Business 7 and Entrepreneurship of the Senate, a report 8 describing the goals set under subparagraph 9 (A) and the incentives used or created under 10 subparagraph (B).’’. 11 SEC. 4. ENCOURAGING INNOVATION IN UNITED STATES 12 MANUFACTURING. 13 Section 9 of the Small Business Act (15 U.S.C. 638) 14 is amended by adding at the end the following new sub- 15 section: 16 ‘‘(uu) ENCOURAGING INNOVATION IN UNITED 17 STATES MANUFACTURING.—In carrying out this section, 18 the Administrator shall— 19 ‘‘(1) ensure that, in selecting small business 20 concerns to participate in SBIR or STTR programs 21 under this section, Federal agencies give high pri- 22 ority to small manufacturing companies and other 23 small business concerns engaged in or planning to 24 engage in manufacturing research and development 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3774 IH for the purpose of developing and producing new 1 products and technologies in the United States; and 2 ‘‘(2) include in the annual report to Congress 3 under subsection (b)(7) a determination of whether 4 the priority described in paragraph (1) is being car- 5 ried out.’’. 6 SEC. 5. ENCOURAGING INNOVATION IN CYBERSECURITY. 7 Section 9 of the Small Business Act (15 U.S.C. 638), 8 as amended by section 4, is further amended by adding 9 at the end the following new subsection: 10 ‘‘(vv) ENCOURAGING INNOVATION IN CYBERSECU- 11 RITY.—In carrying out this section, the Administrator 12 shall— 13 ‘‘(1) ensure that, in selecting small business 14 concerns to participate in SBIR or STTR programs 15 under this section, Federal agencies engaged in cy- 16 bersecurity research give high priority to small busi- 17 ness concerns that are engaged in cybersecurity re- 18 search and development, for the purpose of devel- 19 oping and implementing technology services and 20 products to strengthen the security of United States 21 Government and private computer systems, includ- 22 ing software, hardware, and portable devices; and 23 ‘‘(2) include in the annual report to Congress 24 under subsection (b)(7) a determination of whether 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3774 IH the priority described in paragraph (1) is being car- 1 ried out.’’. 2 SEC. 6. COMPLIANCE OF PHASE III AWARDS WITH COM- 3 PETITIVE PROCEDURES. 4 Section 9(r)(4) of the Small Business Act (15 U.S.C. 5 638(r)(4)) is amended by inserting ‘‘as direct follow-on 6 awards issued without further competition’’ after ‘‘devel- 7 oped the technology’’. 8 SEC. 7. PROCUREMENT CENTER REPRESENTATIVES AND 9 OTHER ACQUISITION PERSONNEL IN THE 10 SBIR AND STTR PROGRAMS. 11 (a) DEFINITION OF SENIOR PROCUREMENT EXECU- 12 TIVE.—Section 9(e) of the Small Business Act (15 U.S.C. 13 638(e)) is amended— 14 (1) in paragraph (12)(B), by striking ‘‘and’’ at 15 the end; 16 (2) in paragraph (13)(B), by striking the period 17 at the end and inserting ‘‘; and’’; and 18 (3) by adding at the end the following new 19 paragraph: 20 ‘‘(14) the term ‘senior procurement executive’ 21 means an official designated under section 1702(c) 22 of title 41, United States Code, as the senior pro- 23 curement executive of a Federal agency participating 24 in a SBIR or STTR program.’’. 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 3774 IH (b) INCLUSION OF SENIOR PROCUREMENT EXECU- 1 TIVES IN SBIR AND STTR.— 2 (1) IN GENERAL.—Section 9(b) of the Small 3 Business Act (15 U.S.C. 638(b)) is amended— 4 (A) in paragraph (8), by striking ‘‘and’’ at 5 the end; 6 (B) in paragraph (9), by striking the pe- 7 riod at the end and inserting ‘‘; and’’; and 8 (C) by adding at the end the following new 9 paragraph: 10 ‘‘(10) to coordinate, where appropriate, with the 11 senior procurement executive of the relevant Federal 12 agency to assist small business concerns partici- 13 pating in a SBIR or STTR program with commer- 14 cializing research developed under such a program 15 before such small business concern is awarded a con- 16 tract from such Federal agency.’’. 17 (2) TECHNICAL AMENDMENT.—Section 9(b)(3) 18 of the Small Business Act (15 U.S.C. 638(b)(3)) is 19 amended by striking ‘‘and’’ at the end. 20 (c) MODIFICATIONS RELATING TO PROCUREMENT 21 CENTER REPRESENTATIVES AND OTHER ACQUISITION 22 PERSONNEL.— 23 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 3774 IH (1) SBIR AMENDMENT.—Section 9(j) of the 1 Small Business Act (15 U.S.C. 638(j)) is amended 2 by adding at the end the following new paragraph: 3 ‘‘(4) MODIFICATIONS RELATING TO PROCURE- 4 MENT CENTER REPRESENTATIVES.—Upon the en- 5 actment of this paragraph, the Administrator shall 6 modify the policy directives issued pursuant to this 7 subsection to require procurement center representa- 8 tives (as described in section 15(l)) to coordinate 9 with the appropriate contracting officer or SBIR 10 program officer, and the appropriate Director of 11 Small and Disadvantaged Business Utilization estab- 12 lished pursuant to section 15(k) for the agency let- 13 ting the contract, to assist small business concerns 14 participating in the SBIR program, particularly in 15 Phase III. The procurement center representatives 16 shall coordinate with the appropriate contracting of- 17 ficer and the appropriate Director of the Office of 18 Small and Disadvantaged Business Utilization estab- 19 lished pursuant to section 15(k) for the agency let- 20 ting the contract.’’. 21 (2) STTR AMENDMENT.—Section 9(p)(2) of 22 the Small Business Act (15 U.S.C. 638(p)(2)) is 23 amended— 24 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 3774 IH (A) in subparagraph (E)(ii), by striking 1 ‘‘and’’ at the end; 2 (B) in subparagraph (F), by striking the 3 period at the end and inserting a semicolon; 4 and 5 (C) by adding at the end the following new 6 subparagraph: 7 ‘‘(G) procedures to ensure that procure- 8 ment center representatives (as described in 9 section 15(l))— 10 ‘‘(i) coordinate with the appropriate 11 contracting officer or STTR program offi- 12 cer, and the appropriate Director of Small 13 and Disadvantaged Business Utilization 14 established pursuant to section 15(k) for 15 the agency letting the contract, to assist 16 small business concerns participating in 17 the STTR program, particularly in Phase 18 III; and 19 ‘‘(ii) coordinate with the appropriate 20 contracting officer and the appropriate Di- 21 rector of the Office of Small and Disadvan- 22 taged Business Utilization established pur- 23 suant to section 15(k) for the Federal 24 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 3774 IH agency letting the contract in providing the 1 assistance described in clause (i); and’’. 2 (d) AMENDMENT TO DUTIES OF PROCUREMENT 3 CENTER REPRESENTATIVES.—Section 15(l)(2) of the 4 Small Business Act (15 U.S.C. 644(l)(2)) is amended— 5 (1) in subparagraph (I), by striking ‘‘and’’ at 6 the end; 7 (2) by redesignating subparagraph (J) as sub- 8 paragraph (L); and 9 (3) by inserting after subparagraph (I) the fol- 10 lowing new subparagraphs: 11 ‘‘(J) coordinate with the appropriate con- 12 tracting officer or SBIR or STTR program offi- 13 cer, and the appropriate Director of Small and 14 Disadvantaged Business Utilization established 15 pursuant to section 15(k) for the agency letting 16 the contract, to assist small business concerns 17 participating in a SBIR or STTR program 18 under section 9 with Phase III; 19 ‘‘(K) coordinate with the appropriate con- 20 tracting officer and the appropriate Director of 21 the Office of Small and Disadvantaged Busi- 22 ness Utilization established pursuant to sub- 23 section (k) for the agency letting the contract; 24 and’’. 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 3774 IH (e) AMENDMENT TO THE DUTIES OF THE DIRECTOR 1 OF SMALL AND DISADVANTAGED BUSINESS UTILIZATION 2 FOR FEDERAL AGENCIES.—Section 15(k) of the Small 3 Business Act (15 U.S.C. 644(k)) is amended— 4 (1) in paragraph (19), by striking ‘‘and’’ at the 5 end; 6 (2) in paragraph (20), by striking the period at 7 the end and inserting a semicolon; and 8 (3) by adding at the end the following new 9 paragraphs: 10 ‘‘(21) shall coordinate with the appropriate con- 11 tracting officer of SBIR or STTR program officer to 12 assist small business concerns participating in a 13 SBIR or STTR program under section 9 with re- 14 searching applicable solicitations for the award of a 15 Federal contract (particularly with the Federal 16 agency that has a funding agreement (as defined 17 under section 9) with the concern) to market the re- 18 search developed by such concern under such SBIR 19 or STTR program; and 20 ‘‘(22) shall provide technical assistance to small 21 business concerns participating in a SBIR or STTR 22 program under section 9 to submit a bid for an 23 award of a Federal contract, including coordination 24 with procurement center representatives and the ap- 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 3774 IH propriate senior procurement executive for the agen- 1 cy letting the contract.’’. 2 SEC. 8. INCREASED OUTREACH REQUIREMENTS. 3 (a) IN GENERAL.— 4 (1) SBIR AMENDMENT.—Section 9(j) of the 5 Small Business Act (15 U.S.C. 638(j)), as amended 6 by section 8, is further amended by adding at the 7 end the following new paragraph: 8 ‘‘(5) INCREASED OUTREACH REQUIREMENTS.— 9 Upon the enactment of this paragraph, the Adminis- 10 trator shall modify the policy directives issued pur- 11 suant to this subsection to require outreach efforts 12 to increase the participation in technological innova- 13 tion under the SBIR programs among individuals 14 conducting research at minority institutions (as de- 15 fined in section 365(3) of the Higher Education Act 16 of 1965) and Hispanic-serving institutions (as de- 17 fined in section 502(a)(5) of such Act).’’. 18 (2) STTR AMENDMENT.—Section 9(p)(2) of 19 the Small Business Act (15 U.S.C. 638(p)(2)), as 20 amended by section 8, is further amended by adding 21 at the end the following new subparagraph: 22 ‘‘(H) procedures for outreach efforts to in- 23 crease the participation in technological innova- 24 tion under the SBIR programs among individ- 25 VerDate Sep 11 2014 21:09 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.IH H3774 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 3774 IH uals conducting research at minority institu- 1 tions (as defined in section 365(3) of the High- 2 er Education Act of 1965) and Hispanic-serving 3 institutions (as defined in section 502(a)(5) of 4 such Act).’’. 5 (b) FUNDING FOR OUTREACH.—Section 9(mm)(1) of 6 the Small Business Act (15 U.S.C. 638(mm)(1)) is 7 amended— 8 (1) in subparagraph (I), by striking the ‘‘and’’ 9 at the end; 10 (2) in subparagraph (J), by striking the period 11 [Text truncated for display. 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