SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBIR and STTR Enhancement Act''.

SEC. 2. INCREASED NUMBER OF RESEARCH TOPIC SOLICITATIONS ANNUALLY AND 
              SHORTENED PERIOD FOR FINAL DECISIONS ON APPLICATIONS.

    (a) Increased Number of Research Topic Solicitations Annually.--
Section 9(g)(2) of the Small Business Act (15 U.S.C. 638(g)(2)) is 
amended by inserting before the semicolon at the end the following: ``, 
but not less often than twice per year''.
    (b) Shortened Period for Final Decisions on Applications.--Section 
9(g)(4) of the Small Business Act (15 U.S.C. 638(g)(4)) is amended by 
inserting before the semicolon at the end the following: ``, but a 
final decision on each proposal shall be rendered not later than 90 
days after the date on which the solicitation closes unless the 
Administrator determines, on a case by case basis, that a decision may 
be extended from 90 days to 180 days''.

SEC. 3. AGENCIES SHOULD FUND VITAL R&D PROJECTS WITH THE POTENTIAL FOR 
              COMMERCIALIZATION.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended by 
adding at the end the following:
    ``(aa) Multiple First Phase SBIR Awards Report.--The Administrator 
shall, on an annual basis, submit to the Committee on Small Business 
and the Committee on Science and Technology of the House of 
Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a list identifying each small business 
concern that, for the period covered by the preceding 5 fiscal years, 
received 15 or more first phase SBIR awards and no second phase SBIR 
awards.''.

SEC. 4. FEDERAL AGENCY ENGAGEMENT WITH SBIR AWARDEES THAT HAVE BEEN 
              AWARDED MULTIPLE PHASE ONE AWARDS BUT HAVE NOT BEEN 
              AWARDED PHASE TWO AWARDS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following:
    ``(bb) Requirements Relating to Federal Agency Engagement With 
Certain First Phase SBIR Awardees.--Each Federal agency required by 
this section to conduct an SBIR program shall engage with SBIR awardees 
that have been awarded multiple first phase SBIR awards but have not 
been awarded any second phase SBIR awards and shall develop performance 
measures with respect to awardee progression in the SBIR program.''.

SEC. 5. FUNDING FOR ADMINISTRATIVE, OVERSIGHT, AND CONTRACT PROCESSING 
              COSTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following:
    ``(cc) Assistance for Administrative, Oversight, and Contract 
Processing Costs.--
            ``(1) In general.--From amounts made available to carry out 
        this subsection, the Administrator may, on petition by Federal 
        agencies required by this section to conduct an SBIR program, 
        transfer funds to such agencies to assist with the 
        administrative, oversight, and contract processing costs 
        relating to such program.
            ``(2) Petitions.--The Administrator shall establish rules 
        for making transfers under paragraph (1). The initial set of 
        rules shall be promulgated not later than 180 days after the 
        date of the enactment of this subsection.
            ``(3) Limit on transfer.--A Federal agency may not receive 
        under this subsection in a fiscal year an amount greater than 3 
        percent of the SBIR budget of such agency for such fiscal year.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administrator to carry out this 
        subsection $27,500,000 for each of fiscal years 2010 and 
        2011.''.

SEC. 6. COMPTROLLER GENERAL AUDIT OF HOW FEDERAL AGENCIES CALCULATE 
              EXTRAMURAL RESEARCH BUDGETS.

    The Comptroller General of the United States shall carry out a 
detailed audit of how Federal agencies calculate extramural research 
budgets for purposes of calculating the size of the agencies' Small 
Business Innovation Research Program and Small Business Technology 
Transfer Program budgets. Not later than 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Small Business and the Committee on Science and Technology 
of the House of Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the results of the audit.

SEC. 7. AGENCY DATABASES TO SUPPORT PROGRAM EVALUATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)) is 
amended--
            (1) in paragraph (2)(A)--
                    (A) by striking ``and'' at the end of clause (ii);
                    (B) by inserting ``and'' at the end of clause 
                (iii); and
                    (C) by adding at the end the following new clause:
                            ``(iv) information on the ownership 
                        structure of award recipients, both at the time 
                        of receipt of the award and upon completion of 
                        the award period;'';
            (2) by amending paragraph (3) to read as follows:
            ``(3) Updating information for database.--
                    ``(A) In general.--A Federal agency shall not make 
                a Phase I or Phase II payment to a small business 
                concern under this section unless the small business 
                concern has provided all information required under 
                this subsection and available at the time with respect 
                to the award under which the payment is made, and with 
                respect to any other award under this section 
                previously received by the small business concern or a 
                predecessor in interest to the small business concern.
                    ``(B) Apportionment.--In complying with this 
                paragraph, a small business concern may apportion sales 
                or additional investment information relating to more 
                than one second phase award among those awards, if it 
                notes the apportionment for each award.
                    ``(C) Annual updates upon termination.--A small 
                business concern receiving an award under this section 
                shall--
                            ``(i) in the case of a second phase award, 
                        update information in the databases required 
                        under paragraphs (2) and (6) concerning that 
                        award at the termination of the award period;
                            ``(ii) in the case of award recipients not 
                        described in clause (iii), be requested to 
                        voluntarily update such information annually 
                        thereafter for a period of 5 years; and
                            ``(iii) in the case of a small business 
                        concern applying for a subsequent first phase 
                        or second phase award, be required to update 
                        such information annually thereafter for a 
                        period of 5 years.''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Agency program evaluation databases.--Each Federal 
        agency required to establish an SBIR or STTR program under this 
        section shall develop and maintain, for the purpose of 
        evaluating such programs, a database containing information 
        required to be contained in the database under paragraph (2). 
        Each such database shall be designed to be accessible to other 
        agencies that are required to maintain a database under this 
        paragraph. Each such database shall be developed and operated 
        in a manner to ensure that each such database is relevant to 
        and contributes to the agency's oversight and evaluation of the 
        SBIR and STTR programs. Paragraphs (4) and (5) apply to each 
        database under this paragraph.''.

SEC. 8. AGENCY DATABASES TO SUPPORT TECHNOLOGY UTILIZATION.

    Section 9(k) of the Small Business Act (15 U.S.C. 638(k)), as 
amended, is further amended by adding at the end the following new 
paragraph:
            ``(7) Agency databases to support technology utilization.--
        Each Federal agency with an SBIR or STTR program shall create 
        and maintain a technology utilization database, which shall be 
        available to the public and shall contain data supplied by the 
        award recipients specifically to help them attract customers 
        for the products and services generated under the SBIR or STTR 
        project, and to attract additional investors and business 
        partners. Each database created under this paragraph shall 
        include information on the other databases created under this 
        paragraph by other Federal agencies. Participation in a 
        database under this paragraph shall be voluntary, except that 
        such participation is required of all award recipients who 
        received supplemental payments from SBIR and STTR program funds 
        above their initial Phase II award. Each database created under 
        this paragraph shall be developed and operated in a manner to 
        ensure that each such database is relevant to and contributes 
        to the agency's oversight and evaluation of the SBIR and STTR 
        programs.''.

SEC. 9. INTERAGENCY POLICY COMMITTEE.

    (a) Establishment.--The Director of the Office of Science and 
Technology Policy shall establish an Interagency SBIR/STTR Policy 
Committee comprised of one representative from each Federal agency with 
an SBIR program.
    (b) Cochairs.--The Director of the Office of Science and Technology 
Policy and the Director of the National Institute of Standards and 
Technology shall jointly chair the Interagency SBIR/STTR Policy 
Committee.
    (c) Duties.--The Interagency SBIR/STTR Policy Committee shall 
review the following issues and make policy recommendations on ways to 
improve program effectiveness and efficiency:
            (1) The public and government databases described in 
        section 9(k) (1) and (2) of the Small Business Act (15 U.S.C. 
        638(k) (1) and (2)).
            (2) Federal agency flexibility in establishing Phase I and 
        II award sizes, and appropriate criteria to exercise such 
        flexibility.
            (3) Commercialization assistance best practices in Federal 
        agencies with significant potential to be employed by other 
        agencies, and the appropriate steps to achieve that leverage, 
        as well as proposals for new initiatives to address funding 
        gaps business concerns face after Phase II but before 
        commercialization.
    (d) Reports.--The Interagency SBIR/STTR Policy Committee shall 
transmit to the Committee on Science and Technology and the Committee 
on Small Business of the House of Representatives, and to the Committee 
on Small Business and Entrepreneurship of the Senate--
            (1) a report on its review and recommendations under 
        subsection (c)(1) not later than 1 year after the date of 
        enactment of this Act;
            (2) a report on its review and recommendations under 
        subsection (c)(2) not later than 18 months after the date of 
        enactment of this Act; and
            (3) a report on its review and recommendations under 
        subsection (c)(3) not later than 2 years after the date of 
        enactment of this Act.

SEC. 10. NATIONAL RESEARCH COUNCIL SBIR STUDY.

    Section 108(d) of the Small Business Reauthorization Act of 2000, 
enacted into law by reference under section 1(a)(9) of the Consolidated 
Appropriations Act, 2001 (Public Law 106-554), is amended--
            (1) by striking ``of the Senate'' and all that follows 
        through ``not later than 3'' and inserting ``of the Senate, not 
        later than 3''; and
            (2) by striking ``; and'' and all that follows through 
        ``update of such report''.

SEC. 11. EXPRESS AUTHORITY TO ``FAST-TRACK'' PHASE TWO AWARDS FOR 
              PROMISING PHASE ONE RESEARCH.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following:
    ``(dd) Authority to `Fast-Track' Phase Two Awards for Promising 
Phase One Research.--To address the delay between an award for the 
first phase of an SBIR program and the application for and extension of 
an award for the second phase of such program, each Federal agency with 
an SBIR program may develop `fast-track' programs to eliminate such 
delay by issuing second phase SBIR awards as soon as practicable, 
including in appropriate cases simultaneously with the issuance of the 
first phase SBIR award. The Administrator shall encourage the 
development of such `fast-track' programs.''.

SEC. 12. INCREASED SBIR AND STTR AWARD LEVELS.

    (a) SBIR Award Level and Annual Adjustments.--Section 9(j) of the 
Small Business Act (15 U.S.C. 638(j)) is amended by adding at the end 
the following:
    ``(4) Further Additional Modifications.--Not later than 180 days 
after the date of enactment of this paragraph and notwithstanding 
paragraph (2)(D), the Administrator shall modify the policy directives 
issued pursuant to this subsection to provide for an increase to 
$250,000 in the amount of funds which an agency may award in the first 
phase of an SBIR program, and to $2,000,000 in the second phase of an 
SBIR program, and a mandatory annual adjustment of such amounts to 
reflect economic adjustments and programmatic considerations.''.
    (b) STTR Award Level and Annual Adjustments.--Section 
9(p)(2)(B)(ix) of the Small Business Act (15 U.S.C. 638(p)(2)(B)(ix)) 
is amended--
            (1) by striking ``$100,000'' and ``$750,000'' and inserting 
        ``$250,000'' and ``$2,000,000'', respectively; and
            (2) by striking ``greater or lesser amounts'' and inserting 
        ``with a mandatory annual adjustment of such amounts to reflect 
        economic adjustments and programmatic considerations, and with 
        lesser amounts''.
    (c) Limitation on Certain Awards.--Section 9 of the Small Business 
Act (15 U.S.C. 638), as amended, is further amended by adding at the 
end the following:
    ``(ee) Limitation on Phase I and II Awards.--
            ``(1) In general.--No Federal agency shall issue an award 
        under the SBIR program or the STTR program if the size of the 
        award exceeds the amounts established under subsections (j)(4) 
        and (p)(2)(B)(ix), except as provided in paragraph (2).
            ``(2) Exception.--The prohibition in paragraph (1) does not 
        apply to an agency for a fiscal year if the head of the 
        agency--
                    ``(A) notifies the Administrator that the agency 
                intends to issue awards in that fiscal year without 
                regard to the prohibition in paragraph (1); and
                    ``(B) reports to the Committee on Small Business 
                and the Committee on Science and Technology of the 
                House of Representatives and the Committee on Small 
                Business and Entrepreneurship of the Senate at least 
                annually the number of instances in which the agency 
                issued an award that exceeds the amounts referred to in 
                paragraph (1) and the justification for each such 
                instance.''.

SEC. 13. EXPRESS AUTHORITY FOR AN AGENCY TO AWARD SEQUENTIAL PHASE TWO 
              AWARDS FOR SBIR-FUNDED PROJECTS.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following:
    ``(ff) Requirements Relating to Additional Second Phase SBIR 
Awards.--
            ``(1) In general.--A small business concern that receives a 
        second phase SBIR award for a project remains eligible to 
        receive additional second phase SBIR awards for such project.
            ``(2) Technical or weapons systems.--Agencies are expressly 
        authorized to provide additional second phase SBIR awards for 
        testing and evaluation assistance for the insertion of SBIR 
        technologies into technical or weapons systems.''.

SEC. 14. FIRST PHASE REQUIRED.

    Section 9 of the Small Business Act (15 U.S.C. 638), as amended, is 
further amended by adding at the end the following:
    ``(gg) First Phase Required.--Under this section, a Federal agency 
shall provide to a small business concern an award for the second phase 
of an SBIR program with respect to a project only if such agency finds 
that the small business concern has been provided an award for the 
first phase of an SBIR program with respect to such project or has 
completed the determinations described in subsection (e)(4)(A) with 
respect to such project despite not having been provided an award for 
the first phase.''.
SBIR and STTR Enhancement Act - Amends the Small Business Act to direct each federal agency that is required to establish a small business innovation research (SBIR) program to: (1) issue research topic solicitations at least twice a year; and (2) make a final decision on topic proposals within 90 days, unless the Administrator of the Small Business Administration (SBA) determines that a decision may be extended to 180 days.

Requires the Administrator to submit to the congressional small business committees a list of small businesses that, for the preceding five-year period, received 15 or more first phase SBIR awards but no second phase awards. Requires each federal agency conducting an SBIR program to engage with such awardees and develop performance measures for awardee progression in the SBIR program.

Provides funding for SBIR administrative, oversight, and contract processing costs.

Requires a Comptroller General audit on how federal agencies calculate SBIR and STTR (Small Business Technology Transfer) extramural research budgets.

Directs each federal agency conducting an SBIR or STTR program to establish and maintain program evaluation and technology utilization databases.

Establishes an Interagency SBIR/STTR Policy Committee.

Authorizes each federal agency with an SBIR program to "fast track" phase two awards.

Increases SBIR and STTR award levels.

Provides express authority for agencies to award sequential phase two awards for SBIR-funded projects.

Allows a federal agency to provide a second phase award to a small business only if the business has been provided an award for the first phase or has completed first phase requirements despite not having been provided a first phase award.
To amend the Small Business Act to enhance the Small Business Innovation Research Program and the Small Business Technology Transfer Program, and for other purposes.