Encouraging new SBIR and STTR entrants

(a) Encouraging new SBIR and STTR entrants Section 9(jj) of the Small Business Act (15 U.S.C. 638(jj)) is amended to read as follows: (jj) Encouraging new SBIR and STTR entrants (1) Optimizing SBIR and STTR funding (A) In general The head of a participating agency may award a Phase I or Phase II award to a small business concern only if the total value of the Phase I and Phase II awards awarded to such small business concern, including its affiliates, spinouts, and subsidiaries, does not exceed $75,000,000. (B) Waiver (i) In general On an award-by-award basis, the Undersecretary or Director overseeing the SBIR or STTR program of a Federal agency may waive the requirement under subparagraph (A) with a written justification by the Undersecretary or Director that explains why the use of the waiver authority for an otherwise disqualified small business concern is imperative for national security purposes and why the work cannot be performed by other qualifying small business concerns. (ii) Nondelegation The waiver authority established under clause (i) may not be delegated. (iii) Record requirement Participating agencies shall maintain information on any awards made using the waiver established under clause (i), including the amount of the award, the written justification for each award, and the identity of the award recipient. (iv) Report The Administrator shall include the information described in clause (iii) in the annual report of the Administrator to Congress required by subsection (b)(7). (2) Principal investigators An individual may not concurrently serve as the principal investigator on more than 1 proposal to a single Phase I solicitation or a single Phase II solicitation. (3) Phase i size standard A small business concern applying for a Phase I award may not have annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of more than $40,000,000 for the most recent fiscal year.. (b) Phase 1 A program (1) In general Section 9 of the Small Business Act (15 U.S.C. 638) is amended— (A) in subsection (e)— (i) in paragraph (4)— (I) in subparagraph (A), by striking subparagraph (B) and inserting subparagraph (C); (II) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D); and (III) by inserting after subparagraph (A), the following: (B) a 1A phase for the same purposes as the first phase described under subparagraph (A) and intended to increase accessibility to the program for new entrants with proposals submitted pursuant to only SBIR open topic announcements;; and (ii) by adding at the end following: (20) the term Phase 1A means the phase described in paragraph (4)(B);; and (B) by amending subsection (pp) to read as follows: (pp) Phase 1 A awards (1) Sense of congress It is the sense of Congress that— (A) Phase 1A funds will bring thousands of new small business concerns committed to commercialization of critical technologies into the SBIR program; and (B) in order for participating agencies to benefit from the full scope of American innovation and identify the most promising solutions to scale, Phase 1A awards should fund the strongest technologies in a topic area regardless of— (i) the location of the small business concern within the United States; or (ii) the educational background of the principal investigator. (2) Authorization The head of each agency with an SBIR program shall allocate not less than 1.5 percent of funding and not more than 3 percent of funding for the SBIR program of the agency to Phase 1A awards. (3) Solicitation A solicitation issued under this subsection shall be conducted as an open topic announcement. (4) Eligibility A small business concern, including its affiliates, spinouts, or subsidiaries, is eligible for an award under this subsection only if such small business concern, including its affiliates, spinouts, or subsidiaries, has not previously received an SBIR or STTR award. (5) Proposal (A) In general A proposal submitted in response to a solicitation under this subsection shall consist of a report that is not more than 5 pages in length and containing the criteria in clauses (i) through (iv) of subparagraph (B). (B) Criteria (i) Identification of program The small business concern shall describe the problem that the proposal is intended to address for the awarding agency and any commercial customer. (ii) Description of solution The small business concern shall describe the proposed solution, including the technical basis for the solution to demonstrate how the solution would address the problem described in the proposal, including the level of maturity of the solution at the time of the proposal. (iii) Effects of the solution The small business concern shall describe how adoption of the proposed solution would produce potential time savings, cost savings, risk reduction, improvement of mission outcomes, or any other beneficial effects for the awarding agency and any commercial customer. (iv) Differentiation The small business concern shall— (I) identify the state of solutions in use at the time of the proposal to address the problem described in the proposal; and (II) explain how the proposed solution is a unique and novel solution. (v) Commercialization strategy The small business concern shall— (I) describe how the small business concern intends to fund the proposed solution from sources other than the award; and (II) explain the market for the proposed solution, including the intended Government and commercial end users. (6) Award limits (A) Number of awards A small business concern or principal investigator is eligible for not more than one Phase 1A award. (B) Amount An award made under this subsection shall be for not more than $40,000. (7) Notification of selection or non-selection Each agency shall notify each small business concern of the award decision of the agency on any proposal submitted by the small business concern not later than 90 days after the date on which the solicitation closes. (8) Application for phase ii award (A) Eligibility A small business concern that receives a Phase 1A award shall be eligible to apply for a Phase II award. (B) Use of funds A small business concern may use funds from a Phase 1A award to develop a proposed solution in pursuit of a subsequent proposal for a Phase I award or a Phase II award. (9) Streamlined awards The head of each participating agency shall implement streamlined processes and requirements for submitting proposals and applying for solicitations for Phase 1A awards. (10) Peer review requirement The head of a participating agency may waive any applicable peer review requirements for Phase 1A awards.. (2) Conforming amendments Section 9(e) of the Small Business Act (15 U.S.C. 638(e)) is amended— (A) in paragraph (12)(A), by striking paragraph (4)(B) and inserting paragraph (4)(C); and (B) in paragraph (13)(A), by striking paragraph (4)(C) and inserting paragraph (4)(D).