Improving direct to Phase II authorities

Section 9(cc) of the Small Business Act (15 U.S.C. 638(cc)) is amended to read as follows: (cc) Phase flexibility (1) Awarding a phase ii award absent a phase i award Each agency with an SBIR program may provide to a small business concern an award under Phase II of the SBIR program with respect to a project, without regard to whether the small business concern was provided an award under Phase I of an SBIR program with respect to such project, if the head of the agency determines that the small business concern has completed the determinations described in subsection (e)(4)(A) with respect to such project despite not having been provided a Phase I award. (2) Limitations on awards (A) In general Except as provided in subparagraph (B), the head of each agency with an SBIR program may award not more than 10 percent of the funds allocated for the SBIR program of the agency in a given fiscal year under the authority of this subsection. (B) National institutes of health and department of defense The Director of the National Institutes of Health may award not more than 30 percent of the funds allocated for the SBIR program of the National Institutes of Health in a given fiscal year and the Secretary of Defense may award not more than 30 percent of the funds allocated for the SBIR program of each component in the Department of Defense in a given fiscal year under the authority of this subsection. (C) Limit on eligibility for awards An agency may not make an award under this subsection to a small business concern, including its affiliates, spinouts, and subsidiaries, that has received more than 25 Phase II awards. (D) Limit on number of awards An agency may make not more than 25 awards under this subsection to a small business concern, including its affiliates, spinouts, and subsidiaries..