SBIR and STTR Extension Act of 2022
This bill reauthorizes through FY2025 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.
The bill requires agencies with an SBIR or STTR program to assess the security risks presented by applicants with financial ties or obligations to certain foreign countries. The programs may not make awards to businesses with certain connections to foreign entities.  Additionally, businesses with more than a specified number of prior awards must meet expanded minimum performance standards. The Small Business Administration's Office of Inspector General must audit the small businesses subject to these expanded performance standards.  The bill also establishes various reporting requirements, including directing the Department of Defense, the Department of Energy, the Department of Health and Human Services, and the National Science Foundation to assess the national security and research and integrity risks of the SBIR and STTR programs.
The Government Accountability Office must evaluate and report on aspects of the programs such as the subcontracting practices of award recipients.
[117th Congress Public Law 183]
[From the U.S. Government Publishing Office]



[[Page 2179]]

                   SBIR AND STTR EXTENSION ACT OF 2022

[[Page 136 STAT. 2180]]

Public Law 117-183
117th Congress

                                 An Act


 
 To reauthorize the SBIR and STTR programs and pilot programs, and for 
         other purposes. <<NOTE: Sept. 30, 2022 -  [S. 4900]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: SBIR and STTR 
Extension Act of 2022.>> 
SECTION 1. <<NOTE: 15 USC 631 note.>>  SHORT TITLE.

    This Act may be cited as the ``SBIR and STTR Extension Act of 
2022''.
SEC. 2. <<NOTE: 15 USC 638 note.>>  DEFINITIONS.

    In this Act:
            (1) Administration; administrator.--The terms 
        ``Administration'' and ``Administrator'' mean the Small Business 
        Administration and the Administrator thereof, respectively.
            (2) Federal agency; phase i; phase ii; phase iii; sbir; 
        sttr.--The terms ``Federal agency'', ``Phase I'', ``Phase II'', 
        ``Phase III'', ``SBIR'', and ``STTR'' have the meanings given 
        those terms, respectively, in section 9(e) of the Small Business 
        Act (15 U.S.C. 638(e)).
SEC. 3. REAUTHORIZATION OF SBIR AND STTR PROGRAMS AND PILOT 
                    PROGRAMS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
striking ``2022'' each place that term appears and inserting ``2025''.
SEC. 4. FOREIGN RISK MANAGEMENT.

    (a) Definitions.--Section 9(e) of the Small Business Act (15 U.S.C. 
638(e)) is amended--
            (1) in paragraph (13)(B), by striking ``and'' at the end;
            (2) in paragraph (14), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(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

[[Page 136 STAT. 2181]]

        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.''.

    (b) Due Diligence Program to Assess Security Risks.--
            (1) In general.--Section 9 of the Small Business Act (15 
        U.S.C. 638) is amended by adding at the end the following:

    ``(vv) Due Diligence Program to Assess Security Risks.--
            ``(1) <<NOTE: Coordination.>>  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--

[[Page 136 STAT. 2182]]

                                    ``(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) <<NOTE: Definition.>>  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.''.
            (2) <<NOTE: Deadlines. 15 USC 638 note.>>  Implementation.--
                    (A) In general.--Not later than 270 days after the 
                date of enactment of this Act, the head of a Federal 
                agency required to establish an SBIR or STTR program 
                shall implement a due diligence program under subsection 
                (vv) of section 9 of the Small Business Act (15 U.S.C. 
                638), as added by paragraph (1), at the Federal agency 
                that, to the extent practicable, incorporates the 
                applicable best practices disseminated under paragraph 
                (3).
                    (B) Paperwork reduction act.--Chapter 35 of title 
                44, United States Code (commonly known as the 
                ``Paperwork Reduction Act''), shall not apply to the 
                implementation of a due diligence program under 
                subsection (vv) of section 9 of the Small Business Act 
                (15 U.S.C. 638), as added by paragraph (1).
                    (C) Briefing.--Not later than 30 days after the date 
                of enactment of this Act, and on a recurring basis until 
                implementation is complete, each Federal agency required 
                to establish a due diligence program under subsection 
                (vv) of section 9 of the Small Business Act (15 U.S.C. 
                638), as added by paragraph (1), shall brief 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 on the implementation of the due 
                diligence program.
            (3) <<NOTE: Deadline. Consultations. 15 USC 638 note.>>  
        Best practices.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator shall--
                    (A) <<NOTE: Coordination.>>  in coordination with 
                the Director of the Office of Science and Technology 
                Policy and in consultation with the Committee on Foreign 
                Investment in the United States, disseminate among 
                Federal agencies required to establish an SBIR or STTR 
                program best practices of those Federal agencies for due 
                diligence programs required under subsection (vv) of 
                section 9 of the Small Business Act (15 U.S.C. 638), as 
                added by paragraph (1); and

[[Page 136 STAT. 2183]]

                    (B) in consultation with the Committee on Foreign 
                Investment in the United States, provide to Federal 
                agencies described in subparagraph (A) guidance on the 
                business relationships required to be disclosed under 
                paragraph (13)(G) of subsection (g) and paragraph 
                (17)(G) of subsection (o) of section 9 of the Small 
                Business Act (15 U.S.C. 638), as added by this Act.
            (4) <<NOTE: Deadline. Time period. Reports.>>  GAO study.--
        Not later than 1 year after the date of enactment of this Act, 
        and annually thereafter for 3 years, the Comptroller General of 
        the United States shall conduct a study and submit to the 
        Committee on Small Business and Entrepreneurship and the 
        Committee on Armed Services of the Senate and the Committee on 
        Small Business, the Committee on Armed Services, and the 
        Committee on Science, Space, and Technology of the House of 
        Representatives a report on the implementation and best 
        practices of due diligence programs established under subsection 
        (vv) of section 9 of the Small Business Act (15 U.S.C. 638), as 
        added by paragraph (1), across Federal agencies required to 
        establish an SBIR or STTR program.
            (5) <<NOTE: 15 USC 638 note.>>  Rule of construction.--
        Nothing in subsection (vv) of section 9 of the Small Business 
        Act (15 U.S.C. 638), as added by paragraph (1), shall be 
        construed to--
                    (A) apply to any Federal agency with a due diligence 
                program that applies to the SBIR or STTR programs 
                required under subsection (vv) of section 9 of the Small 
                Business Act (15 U.S.C. 638), as added by paragraph (1), 
                in existence as of the date of enactment of this Act; or
                    (B) restrict any Federal agency from taking due 
                diligence measures in addition to those required under 
                such subsection (vv) at the Federal agency.

    (c) Disclosures Regarding Ties to People's Republic of China and 
Other Foreign Countries.--
            (1) SBIR.--Section 9(g) of the Small Business Act (15 U.S.C. 
        638(g)) is amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(13) <<NOTE: Requirement.>>  require each small business 
        concern submitting a proposal or application for a federally 
        funded award to disclose in the proposal or application--
                    ``(A) the identity of all owners and covered 
                individuals of the small business concern who are a 
                party to any foreign talent recruitment program of any 
                foreign country of concern, including the People's 
                Republic of China;
                    ``(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 of concern;

[[Page 136 STAT. 2184]]

                    ``(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) <<NOTE: Time period.>>  any technology 
                licensing or intellectual property sales to a foreign 
                country of concern, including the People's Republic of 
                China, during the 5-year period preceding submission of 
                the proposal; and
                    ``(G) any foreign business entity, offshore entity, 
                or entity outside the United States related to the small 
                business concern;
            ``(14) <<NOTE: Review. Determination. Records. Time 
        period.>>  after reviewing the disclosures of a small business 
        concern under paragraph (13), and if determined appropriate by 
        the head of such Federal agency, request such small business 
        concern to provide true copies of any contractual or financial 
        obligation or other agreement specific to a business 
        arrangement, or joint-venture like arrangement with an 
        enterprise owned by a foreign state or any foreign entity in 
        effect during the 5-year period preceding submission of the 
        proposal with respect to which such small business concern made 
        such disclosures;''.
            (2) STTR.--Section 9(o) of the Small Business Act (15 U.S.C. 
        638(o)) is amended--
                    (A) in paragraph (15), by striking ``and'' at the 
                end;
                    (B) in paragraph (16), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(17) <<NOTE: Requirement.>>  require each small business 
        concern submitting a proposal or application for a federally 
        funded award to disclose in the proposal or application--
                    ``(A) the identity of all owners and covered 
                individuals of the small business concern who are a 
                party to any foreign talent recruitment program of any 
                foreign country of concern, including the People's 
                Republic of China;
                    ``(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) <<NOTE: Time period.>>  any technology 
                licensing or intellectual property sales to a foreign 
                country of concern, including the People's Republic of 
                China, during the 5-year period preceding submission of 
                the proposal; and

[[Page 136 STAT. 2185]]

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

    (d) Denial of Awards.--
            (1) SBIR.--Section 9(g) of the Small Business Act (15 U.S.C. 
        638(g)), as amended by subsection (c)(1), is further amended by 
        adding at the end the following:
            ``(15) <<NOTE: Determination.>>  not make an award under the 
        SBIR program of the Federal agency to a small business concern 
        if the head of the Federal agency determines that--
                    ``(A) <<NOTE: China.>>  the small business concern 
                submitting the proposal or application--
                          ``(i) has an owner or covered individual that 
                      is party to a malign foreign talent recruitment 
                      program;
                          ``(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;''.
            (2) STTR.--Section 9(o) of the Small Business Act (15 U.S.C. 
        638(o)), as amended by subsection (c)(2), is further amended by 
        adding at the end the following:
            ``(19) <<NOTE: Determination.>>  not make an award under the 
        STTR program of the Federal agency to a small business concern 
        if the head of the Federal agency determines that--
                    ``(A) <<NOTE: China.>>  the small business concern 
                submitting the proposal or application--
                          ``(i) has an owner or covered individual that 
                      is party to a malign foreign talent recruitment 
                      program;
                          ``(ii) has a business entity, parent company, 
                      or subsidiary located in the People's Republic of 
                      China or another foreign country of concern; or

[[Page 136 STAT. 2186]]

                          ``(iii) has an owner or covered individual 
                      that has a foreign affiliation with a research 
                      institution located in the People's Republic of 
                      China or another foreign country of concern; 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;''.
SEC. 5. AGENCY RECOVERY AUTHORITY AND ONGOING REPORTING.

    (a) <<NOTE: Requirements.>>  SBIR.--Section 9(g) of the Small 
Business Act (15 U.S.C. 638(g)), as amended by section 4(d)(1), is 
further amended by adding at the end the following:
            ``(16) <<NOTE: Repayment.>>  require a small business 
        concern receiving an award under its SBIR program to repay all 
        amounts received from the Federal agency under the award if--
                    ``(A) the small business concern makes a material 
                misstatement that the Federal agency determines poses a 
                risk to national security; 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).''.

    (b) <<NOTE: Requirements.>>  STTR.--Section 9(o) of the Small 
Business Act (15 U.S.C. 638(o)), as amended by section 4(d)(1), is 
further amended by adding at the end the following:
            ``(20) <<NOTE: Repayment.>>  require a small business 
        concern receiving an award under its STTR program to repay all 
        amounts received from the Federal agency under the award if--
                    ``(A) the small business concern makes a material 
                misstatement that the Federal agency determines poses a 
                risk to national security; 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--

[[Page 136 STAT. 2187]]

                    ``(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).''.

    (c) <<NOTE: 15 USC 638 note.>>  Paperwork Reduction Act.--Chapter 35 
of title 44, United States Code (commonly known as the ``Paperwork 
Reduction Act''), shall not apply to the implementation of paragraphs 
(16) and (17) of subsection (g) or paragraphs (20) and (21) of 
subsection (o) of section 9 of the Small Business Act (15 U.S.C. 638), 
as added by subsections (a) and (b).
SEC. 6. REPORT ON ADVERSARIAL MILITARY AND FOREIGN INFLUENCE IN 
                    THE SBIR AND STTR PROGRAMS.

    (a) Covered Agency Defined.--In this section, the term ``covered 
agency'' means--
            (1) the Department of Defense;
            (2) the Department of Energy;
            (3) the Department of Health and Human Services; or
            (4) the National Science Foundation.

    (b) <<NOTE: Assessments.>>  Requirement.--
            (1) In general.--Except as provided in paragraph (2), not 
        later than 180 days after the date of enactment of this Act, the 
        head of each covered agency shall submit a report assessing the 
        adversarial military and foreign influences in the SBIR and STTR 
        programs at the covered agency to--
                    (A) the Committee on Armed Services, the Committee 
                on Small Business and Entrepreneurship, and the 
                Committee on Commerce, Science, and Transportation of 
                the Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Small Business, and the Committee on Science, Space, 
                and Technology of the House of Representatives.
            (2) Department of health and human services.--The Secretary 
        of Health and Human Services shall submit 2 reports under 
        paragraph (1)--
                    (A) 1 assessing the adversarial military and foreign 
                influences in the SBIR and STTR programs of the National 
                Institutes of Health; and
                    (B) 1 assessing the adversarial military and foreign 
                influences in the SBIR and STTR programs of the 
                Department of Health and Human Services other than those 
                of the National Institutes of Health.

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

    (d) Form.--Each report submitted under subsection (b) shall be in 
unclassified form, but may include a classified annex.
    (e) <<NOTE: Coordination.>>  Independent Entity Contracting.--The 
head of each covered agency, in coordination with the heads of other 
Federal agencies, as appropriate, may enter into a contract with an 
independent entity to prepare a report required under subsection (b).

[[Page 136 STAT. 2188]]

SEC. 7. PROGRAM ON INNOVATION OPEN TOPICS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further amended--
            (1) in subsection (b)(7)--
                    (A) in subparagraph (G), by striking ``and'' at the 
                end; and
                    (B) by adding at the end the following:
                    ``(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;''; and
            (2) by adding at the end the following:

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

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

[[Page 136 STAT. 2189]]

            (3) the number of awards under the SBIR and STTR programs 
        made to non-traditional small business concerns, including those 
        owned by women, minorities, and veterans;
            (4) a description of outreach and assistance efforts by the 
        Department of Defense to encourage and prepare new and diverse 
        small business concerns to participate in the program 
        established under subsection (ww) of section 9 of the Small 
        Business Act (15 U.S.C. 638), as added by subsection (a);
            (5) the length of time to review and disburse awards under 
        such subsection (ww), evaluated in a manner enabling normalized 
        comparisons of such times taken by each Federal agency that is 
        required to establish an SBIR or STTR program and offers open 
        topics;
            (6) <<NOTE: Assessment.>>  the ratio, and an assessment, of 
        the amount of funding allocated towards open topics as compared 
        to conventional topics at each Federal agency that is required 
        to establish an SBIR or STTR program and offers open topics; and
            (7) a comparison of the types of technology and end users 
        funded under open topics compared to the types of technology and 
        end users funded under conventional topics.
SEC. 8. INCREASED MINIMUM PERFORMANCE STANDARDS FOR EXPERIENCED 
                    FIRMS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended by 
this Act, is further amended--
            (1) in subsection (b)(7), by adding at the end the 
        following:
                    ``(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;''; and
            (2) in subsection (qq)--
                    (A) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively;
                    (B) by inserting after paragraph (2) the following:
            ``(3) Increased minimum performance standards for 
        experienced firms.--
                    ``(A) <<NOTE: Time periods.>>  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.-- <<NOTE: Determination. Effective 
                      date.>> If the head of a Federal agency determines 
                      that a small business concern that received a 
                      Phase I award from the Federal agency is not 
                      meeting an applicable increased minimum 
                      performance standard

[[Page 136 STAT. 2190]]

                      modified under clause (i), the small business 
                      concern may not receive more than 20 total Phase I 
                      awards and Phase II awards under subsection (cc) 
                      from each Federal agency during the 1-year period 
                      beginning on the date on which such determination 
                      is made.
                          ``(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) <<NOTE: Time periods.>>  Progress to phase iii 
                success.--
                          ``(i) <<NOTE: Requirements.>>  In general.--
                      Each minimum performance standard established 
                      under paragraph (2)(A)(ii) shall--
                                    ``(I) with respect to a small 
                                business concern that received or 
                                receives more than 50 Phase II awards 
                                during a covered period, require an 
                                average of $250,000 of aggregate sales 
                                and investments per Phase II award 
                                received during such covered period; 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.-- <<NOTE: Determination. Effective 
                      date.>> If the head of a Federal agency determines 
                      that a small business concern that received a 
                      Phase I award from the 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

[[Page 136 STAT. 2191]]

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

[[Page 136 STAT. 2192]]

                                not meet an increased minimum 
                                performance standard that was applicable 
                                to such small business concern.
                                    ``(II) <<NOTE: Determination.>>  
                                Senior official.--The term `senior 
                                official' means an individual appointed 
                                to a position in a Federal agency that 
                                is classified above GS-15 pursuant 
                                section 5108 of title 5, United States 
                                Code, or any equivalent position, as 
                                determined by the Administrator.
                    ``(F) Reporting.--
                          ``(i) <<NOTE: Lists.>>  In general.--Not later 
                      than July 1, 2023, and annually thereafter, the 
                      Administrator shall submit to Congress a list of 
                      the small business concerns that did not meet--
                                    ``(I) an applicable minimum 
                                performance standard established under 
                                paragraph (1)(A)(ii) or (2)(A)(ii); 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) <<NOTE: Deadline.>>  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.'';
                    (C) in paragraph (5), as so redesignated, by 
                striking ``paragraph (3)(A)'' and inserting ``paragraph 
                (4)(A)''; and
                    (D) by adding at the end the following:
            ``(6) <<NOTE: Deadline.>>  Inspector general audit.--Not 
        later than 1 year after the date on which the Administrator 
        implements the increased minimum performance standards under 
        paragraph (3), and periodically thereafter, the Inspector 
        General of the Administration shall--

[[Page 136 STAT. 2193]]

                    ``(A) conduct an audit on whether the small business 
                concerns subject to increased minimum performance 
                standards under paragraph (3)(B) verified--
                          ``(i) the sales by and investments in the 
                      small business concerns--
                                    ``(I) <<NOTE: Time period.>>  during 
                                the 5 fiscal years immediately preceding 
                                the fiscal year in which the small 
                                business concern used such sales and 
                                investments to meet an applicable 
                                increased performance standard; and
                                    ``(II) 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) <<NOTE: Effective date.>>  
                                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) <<NOTE: Assessment.>>  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) <<NOTE: Reports.>>  submit to the Committee on 
                Small Business and Entrepreneurship of the Senate and 
                the Committee on Small Business and the Committee on 
                Science, Space, and Technology of the House of 
                Representatives a report on the audit conducted under 
                subparagraph (A) and the assessment conducted under 
                subparagraph (B).
            ``(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.''.
SEC. 9. PROHIBITION AGAINST WRITING SOLICITATION TOPICS.

    (a) In General.--Section 9 of the Small Business Act (15 U.S.C. 
638), as amended by this Act, is further amended by adding at the end 
the following subsection:
    ``(xx) Additional Provisions Relating to Solicitation Topics.--
            ``(1) <<NOTE: Processes.>>  In general.--A Federal agency 
        required to establish an SBIR or STTR program shall implement a 
        multi-level review

[[Page 136 STAT. 2194]]

        and approval process within the Federal agency for solicitation 
        topics to ensure adequate competition and that no private 
        individual or entity is shaping the requirements for eligibility 
        for the solicitation topic after the selection of the 
        solicitation topic, except that the Federal agency may amend the 
        requirements to clarify the solicitation topic.
            ``(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.''.
SEC. 10. GAO STUDY ON MULTIPLE AWARD WINNERS.

    Not <<NOTE: Deadline. Reports. Public information. Time 
periods. Analyses.>>  later than 18 months after the date of enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study and submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business and 
the Committee on Science, Space, and Technology of the House of 
Representatives a report, which shall be made publicly available, on 
small business concerns that are awarded not less than 50 Phase II 
awards under the SBIR or STTR programs during the consecutive period of 
10 fiscal years preceding the most recent 2 fiscal years, including, to 
the extent practicable, an analysis of--
            (1) the impact of the small business concerns on the SBIR 
        and STTR programs;
            (2) the ratio of the number of Phase II awards received by 
        the small business concerns to the total number of Phase II 
        awards;
            (3) the ability of the small business concerns to 
        commercialize and meet the tenets of the SBIR and STTR programs;
            (4) the impact on new entrants and seeding technology 
        necessary to the Federal agency mission or commercial markets 
        and, with respect to the Department of Defense, whether the 
        types of technology the small business concerns are pursuing are 
        primarily hardware, software, or system components for the 
        warfighter;
            (5) <<NOTE: Evaluation.>>  an evaluation and study of 
        varying levels of award caps and lifetime program earning caps;
            (6) <<NOTE: Assessment.>>  an assessment of the increased 
        minimum performance standards under paragraph (3) of section 
        9(qq) of the Small Business Act (15 U.S.C. 638(qq)), as added by 
        section 8, on the behavior of those concerns and on the SBIR and 
        STTR programs, and whether to continue such increased minimum 
        performance standards; and
            (7) <<NOTE: Recommenda- tions.>>  recommendations on whether 
        alternative minimum performance standards under section 9(qq) of 
        the Small Business Act (15 U.S.C. 638(qq)) should be considered, 
        and the extent to which such alternative minimum performance 
        standards preserve the competitive, merit-based foundation of 
        the SBIR and STTR programs.
SEC. 11. GAO REPORT ON SUBCONTRACTING IN SBIR AND STTR PROGRAMS.

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

[[Page 136 STAT. 2195]]

            (1) <<NOTE: Compliance.>>  The extent to which SBIR awardees 
        and STTR awardees are in compliance with the Federal Funding 
        Accountability and Transparency Act (31 U.S.C. 6101 note).
            (2) The extent to which SBIR awardees and STTR awardees 
        enter into subcontracting agreements with respect to an SBIR or 
        STTR award.
            (3) The total number and dollar amount of subcontracts 
        entered into between an SBIR awardee or an STTR awardee and a 
        concern that is not a small business concern (including such 
        concerns that are defense contractors) with respect to an SBIR 
        or STTR award.
            (4) A description of the type and purpose of subcontracting 
        agreements described in paragraph (2).
            (5) <<NOTE: Analysis.>>  An analysis of whether the use of 
        subcontracts by an SBIR awardee or an STTR awardee is consistent 
        with the purposes of section 9 of the Small Business Act (15 
        U.S.C. 638).

    Approved September 30, 2022.

LEGISLATIVE HISTORY--S. 4900:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 168 (2022):
            Sept. 20, considered and passed Senate.
            Sept. 28, 29, considered and passed House.

                                  <all>
SBIR and STTR Extension Act of 2022
A bill to reauthorize the SBIR and STTR programs and pilot programs, and for other purposes.
SBIR and STTR Extension Act of 2022
SBIR and STTR Extension Act of 2022
Sen. Cardin, Benjamin L.