S. 3971
Small Business Innovation and Economic Security Act
Sponsor: Joni Ernst
1 cosponsor
Official summary
Written by the Congressional Research Service.
Small Business Innovation and Economic Security Act
This act reauthorizes through FY2031 and modifies the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program, and related pilot programs. (The SBIR and STTR programs are administered by various federal agencies and provide competitive awards for domestic small businesses to conduct research and development projects that have the potential for commercialization.)
Specifically, the act expands the requirements for federal agencies administering these programs to evaluate the security risks of the small businesses that apply for awards under the programs. If an agency denies an application for security reasons, the agency must provide the small business with the basis for such determination.
Further, each agency must set a maximum number of proposals per fiscal year that a small business concern may submit in response to Phase I and Phase II solicitations.
The act expands the training requirements for agencies' contracting officers and acquisition workforce with respect to Phase III (commercialization of technologies) awards under the SBIR and STTR programs.
The act also establishes strategic breakthrough allocations for critical technology areas. These are additional Phase II SBIR and STTR awards to small businesses that demonstrate an effective technology and receive matching funds.
Text of the bill
Section 9 of the Small Business Act (15 U.S.C. 638(q)), as amended by this Act, is amended—
(1) in subsection (q)—
(A) in paragraph (1)—
(i) in the matter preceding subparagraph (A)—
(I) by striking 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 and inserting shall authorize recipients of awards under the SBIR program or the STTR program to select, if desired, technical and business assistance provided under subparagraph (A) or (B) of paragraph (2) with respect to SBIR or STTR projects;
(II) by inserting cybersecurity assistance, after intellectual property protections,; and
(III) by striking such concerns and inserting such recipients;
(ii) in subparagraph (C), by striking and at the end;
(iii) in subparagraph (D), by striking the period at the end and inserting ; and; and
(iv) by adding at the end the following:
(E) screening for potential foreign involvement in technology development or commercialization activities.
; and
(B) in paragraph (2)—
(i) in the paragraph heading, by striking Vendor selection and inserting Eligible uses of funds.—;
(ii) by striking subparagraph (A);
(iii) by redesignating subparagraph (B) as subparagraph (A); and
(iv) by inserting after subparagraph (A), as so redesignated, the following:
(B) Staff. A small business concern may, by contract or otherwise, use funding provided under this section to hire new staff, augment staff, or direct staff to conduct or participate in training activities consistent with the goals listed in paragraph (1).
(C) in paragraph (3)—
(i) by striking subparagraphs (A) and (B) and inserting the following:
(A) Phase I. A Federal agency described in paragraph (1) shall authorize a recipient of a Phase I SBIR or STTR award to use not more than $6,500 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)—
(i) provided through a vendor selected by the small business concern under paragraph (2)(A); or
(ii) achieved through the activities described in paragraph (2)(B).
(B) Phase II. A Federal agency described in paragraph (1) shall authorize a recipient of a Phase II SBIR or STTR award to utilize not more than $50,000 per project, included as part of the award of the recipient or in addition to the amount of the award of the recipient as determined appropriate by the head of the Federal agency, for the services described in paragraph (1)—
(i) provided through a vendor selected by the small business concern under paragraph (2)(A); or
(ii) achieved through the activities described in paragraph (2)(B).
; and
(D) by adding at the end the following:
(5) Targeted review. A Federal agency may perform targeted reviews of technical and business assistance funding as described in subsection (mm)(1)(F).
; and
(2) by adding at the end the following:
(bbb) I–corps participation
(1) In general. Each Federal agency with an Innovation Corps program (commonly known as I–Corps) that is required to conduct an SBIR or STTR program shall—
(A) provide an option for requesting participation in an I–Corps teams course, I–Corps bootcamp, or another equivalent training program to recipients of an award under the SBIR or STTR program; and
(B) authorize the recipients described in subparagraph (A) to use amounts authorized under subsection (q) to participate in the I–Corps teams course, I–Corps bootcamp, or another equivalent training program.
(2) Cost of participation. The cost of participation by a recipient described in paragraph (1)(A) in an I–Corps course, I–Corps bootcamp, or another equivalent training program may be provided by—
(A) an I–Corps team SBIR or STTR grant;
(B) funds awarded to the recipient under subsection (q);
(C) funds made available to carry out subsection (mm);
(D) the participating teams or other sources as appropriate; or
(E) any combination of sources described in subparagraphs (A), (B), (C), and (D).