S. 3971

Small Business Innovation and Economic Security Act

Sponsor: Joni Ernst

1 cosponsor
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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

Expand all
Sec. 8. Improving SBIR and STTR data collection Since introduced

(a) Additional data fields in SBIR database. Section 9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is amended—

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

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

(3) by adding at the end the following:

Text this section adds to the law

(G) for each award granted, whether the award is classified or designated as—

(i) direct to Phase II, under subsection (cc);

(ii) subsequent Phase II, under subsection (bb)(1);

(iii) a strategic breakthrough award under subsection (ff)(3);

(iv) a Phase III prime contract award; or

(v) a Phase III subcontract award.

(b) Improving Federal Procurement Data Systems data tracking

(1) Definitions. In this section:

(A) Federal agency; Phase II; Phase III; SBIR; STTR. The terms Federal agency, Phase II, Phase III, SBIR, and STTR have the meanings given those terms in section 9(e) of the Small Business Act (15 U.S.C. 638(e)).

(B) Small business concern. The term small business concern has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632).

(2) Requirement to update. The Administrator of General Services shall update the Federal Procurement Data System described in section 1122(a)(4) of title 41, United States Code, or any successor system, to—

(A) require reporting on whether an award under the SBIR or STTR program under section 9 of the Small Business Act (15 U.S.C. 638) is classified or designated as—

(i) direct to Phase II, under subsection (cc) of such section;

(ii) subsequent Phase II, under subsection (bb)(1) of such section;

(iii) a strategic breakthrough award under subsection (ff)(3) of such section, as added by this Act;

(iv) a Phase III prime contract award; or

(v) a Phase III subcontract award;

(B) require reporting on whether a contract is designated as a Phase III contract;

(C) require reporting on whether non-SBIR contracts and subcontracts are using SBIR- or STTR-funded technology; and

(D) require a government contracting officer, when recording a Phase II or Phase III contract following on from work done by a small business concern during a Phase I or Phase II award, to reference an SBIR or STTR contract identification number for relevant prior SBIR or STTR work done.