Bolstering research security of SBIR and STTR awards

Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this Act, is amended— (1) in subsection (g)— (A) by redesignating paragraphs (15), (16), and (17) as paragraphs (16), (18) and (19), respectively; (B) by inserting after paragraph (14) the following: (15) evaluate whether a small business concern presents a risk to national security for any reason, through measures including— (A) the due diligence process required under subsection (vv); (B) disclosures submitted under this subsection; or (C) coordination with the Inspector General of the agency or the intelligence community (as defined under section 3 of the National Security Act of 1947 (50 U.S.C. 3003));; (C) in paragraph (16), as so redesignated— (i) by striking subparagraph (B); (ii) by striking that— and all that follows through the small business concern submitting and inserting that the small business concern submitting; (iii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly; (iv) in subparagraph (B), as so redesignated, by striking or at the end; (v) in subparagraph (C), as so redesignated, by striking and at the end; and (vi) by adding at the end the following: (D) has a foreign risk connecting the small business concern to an entity, including any affiliates, spinouts, or subsidiaries of the entity, or individual on one or more of the following lists: (i) the UFLPA Entity List maintained by the Department of Homeland Security; (ii) the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury; (iii) the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232) and maintained by the Department of Defense; (iv) the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283) and maintained by the Department of Defense; (v) the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce; (vi) the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce; (vii) the List of Equipment and Services maintained by the Federal Communications Commission; and (viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection; (E) has a foreign risk with a primary source that is classified; or (F) has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial;; (D) by inserting after paragraph (16), as so redesignated, the following: (17) not, and any personnel of the Federal agency including technical points of contact shall not, communicate to an applicant prior to formal notification of an award decision that an application was denied due to a foreign risk;; and (E) in paragraph (19), as so redesignated— (i) in subparagraph (B), by striking (16)(A) and inserting (18)(A); and (ii) in subparagraph (C), by striking (16)(B) and inserting (18)(B); and (2) in subsection (o)— (A) by redesignating paragraphs (19), (20), and (21) as paragraphs (20), (22) and (23), respectively; (B) by inserting after paragraph (18) the following: (19) evaluate whether a small business concern presents a risk to national security for any reason, through measures including— (A) the due diligence process required under subsection (vv); (B) disclosures submitted under this subsection; or (C) coordination with the Inspector General of the agency or the intelligence community (as defined under section 3 of the National Security Act of 1947 (50 U.S.C. 3003));; (C) in paragraph (20), as so redesignated— (i) by striking subparagraph (B); (ii) by striking that— and all that follows through the small business concern submitting and inserting that the small business concern submitting; (iii) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), respectively, and adjusting the margins accordingly; (iv) in subparagraph (B), as so redesignated, by striking or at the end; (v) in subparagraph (C), as so redesignated, by striking and at the end; and (vi) by adding at the end the following: (D) has a foreign risk connecting the small business concern to an entity, including any affiliates, spinouts, or subsidiaries of the entity, or individual on one or more of the following lists: (i) the UFLPA Entity List maintained by the Department of Homeland Security; (ii) the Non-SDN Chinese Military-Industrial Complex Companies List of the Office of Foreign Assets Control maintained by the Department of the Treasury; (iii) the Section 889 Prohibition List established under section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115–232) and maintained by the Department of Defense; (iv) the list of Chinese Military companies required under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283) and maintained by the Department of Defense; (v) the Military End User List maintained by the Bureau of Industry and Security of the Department of Commerce; (vi) the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce; (vii) the List of Equipment and Services maintained by the Federal Communications Commission; and (viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protection; (E) has a foreign risk with a primary source that is classified; or (F) has a foreign risk or another national security risk not listed in statute or regulatory guidance that an agency determines warrants a denial;; (D) by inserting after paragraph (20) the following: (21) not, and any personnel of the Federal agency including technical points of contact shall not, communicate to an applicant prior to formal notification of an award decision that an application was denied due to a foreign risk;; and (E) in paragraph (23), as so redesignated— (i) in subparagraph (B), by striking (20)(A) and inserting (22)(A); and (ii) in subparagraph (C), by striking (20)(B) and inserting (22)(B).