Streamlining transition and commercialization rate benchmarks

Section 9(qq) of the Small Business Act (15 U.S.C. 638(qq)) is amended— (1) by amending paragraph (1)(A)(ii) to read as follows: (ii) for small business concerns that received or receive more than 10 Phase I awards, establish a minimum performance standard with respect to the receipt of Phase II awards that shall be a ratio of at least 0.25 for the number of Phase II awards received as compared to the number of Phase I awards received; and; and (2) in paragraph (3)— (A) in subparagraph (A), by striking clauses (i) and (ii) and inserting the following: (i) In general With respect to a small business concern that received or receives more than 25 Phase I awards, the minimum performance standard shall be a ratio of at least 0.5 for the number of Phase II awards received as compared to the number of Phase I awards received. (ii) Consequence of failure to meet standard If the head of a Federal agency determines that a small business concern is not meeting the applicable increased minimum performance standard established under clause (i), such small business concern may not participate in Phase I of the SBIR or STTR program of that agency during the 1-year period beginning on the date on which such determination is made and the small business concern may not receive more than 5 total Phase I awards from that agency during each 1-year period thereafter until the small business concern surpasses the minimum performance standard established under clause (i).; and (B) in subparagraph (B)— (i) in clause (i), by striking subclauses (I) and (II) and inserting the following: (I) with respect to a small business concern, including its affiliates, spinouts, and subsidiaries, that has received more than 25 Phase II awards over its lifetime, require the sum of the annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of the small business concern from sources other than Phase I or Phase II SBIR or STTR awards and investments received by the small business concern to at minimum exceed the sum of the dollars awarded through Phase I and Phase II awards since the date of the first such award; and (II) with respect to a small business concern, including its affiliates, spinouts, and subsidiaries, that receives more than 25 Phase II awards over its lifetime, require a minimum of 65 percent of the sum of the annual receipts (as defined in section 121.104 of title 13, Code of Federal Regulations, or any successor regulation) of the small business concern and investments received by the small business concern during the 3 years preceding the most recent fiscal year come from sources other than Phase I or Phase II SBIR or STTR awards.; and (ii) by amending clause (ii) to read as follows: (ii) Consequence of failure to meet standard If the head of a Federal agency determines that a small business concern is not meeting an applicable increased minimum performance standard modified under clause (i), the small business concern may not apply for additional Phase I awards or Phase II awards until the small business concern has received enough annual receipts from sources other than an SBIR or STTR program to surpass the minimum performance standard established under clause (i)..