SBIR/STTR Oversight Act

#5001 | HR Congress #119

Policy Area: Commerce
Subjects:

Last Action: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (8/19/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "SBIR/STTR Oversight Act" aims to enhance the reporting and evaluation mechanisms for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Key provisions include:

1. **Annual Reports**: Federal agencies administering SBIR and STTR programs are required to submit annual reports to specific congressional committees and make these reports publicly available online.

2. **Comptroller General Report**: A report must be submitted to Congress within three years of enactment, assessing the effectiveness of the SBIR and STTR programs in diversifying participants and supporting the commercialization of innovation. This includes evaluating demographics of award recipients and agency efforts to attract underrepresented groups.

3. **Award Timeliness**: The time frame for reporting on the timeliness of award decisions is extended from three to eleven years, including new requirements to track the average and median times taken by agencies to review proposals.

4. **Pilot Program for NIH**: A pilot program is established to expedite the award process for SBIR and STTR programs at the National Institutes of Health, aiming to simplify procedures and reduce funding release times to approximately 90 days.

Overall, the legislation seeks to improve accountability, increase participation from diverse groups, and accelerate the funding process to better support small businesses in innovation and technology development.

Possible Impacts

The SBIR/STTR Oversight Act can affect people in various ways, particularly those involved in small businesses, research, and innovation. Here are three examples:

1. **Increased Transparency and Accountability for Small Businesses**: The requirement for federal agencies to publish annual reports about the SBIR and STTR programs on their websites enhances transparency. Small business owners and potential applicants can access this data to better understand the funding landscape, which may influence their decision to apply for grants. Increased visibility into the demographics and participation levels can also encourage underrepresented groups to engage more actively in these programs.

2. **Improved Access for Underrepresented Groups**: The act mandates that reports assess the efforts of participating agencies to broaden representation among new entrants and underrepresented groups. This focus aims to create a more equitable environment where minority-owned businesses and those in states with historically low award levels can access federal funding. As a result, individuals from these backgrounds may find more opportunities to secure funding for their innovative ideas.

3. **Faster Award Timeliness and Streamlined Processes**: The establishment of a pilot program to accelerate the National Institutes of Health’s (NIH) award process aims to significantly reduce the time it takes for small businesses to receive funding. By aiming for a quicker turnaround of approximately 90 days, entrepreneurs can expedite their projects, leading to faster commercialization of new technologies and potentially creating jobs and economic growth. This efficiency can enhance the competitiveness of small businesses in the research and development sector.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5001 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 5001

To amend the reporting requirements for the SBIR and STTR programs, and 
                           for other purpose.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 19, 2025

 Mr. McGarvey introduced the following bill; which was referred to the 
   Committee on Small Business, and in addition to the Committee on 
    Science, Space, and Technology, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the reporting requirements for the SBIR and STTR programs, and 
                           for other purpose.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SBIR/STTR Oversight Act''.

SEC. 2. ANNUAL REPORTS TO CONGRESS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (g)(9)--
                    (A) by inserting ``the House Committee on Small 
                Business, Senate Committee on Small Business and 
                Entrepreneurship,'' after ``SBIR program to'';
                    (B) by inserting a comma after ``Administration''; 
                and
                    (C) by inserting after ``Technology Policy'' the 
                following: ``and publish such report on the website of 
                such Federal agency as soon as practicable'';
            (2) in subsection (o)(10)--
                    (A) by inserting ``House Committee on Small 
                Business, Senate Committee on Small Business and 
                Entrepreneurship,'' after ``STTR program to'';
                    (B) by inserting a comma after ``Administration''; 
                and
                    (C) by inserting after ``Technology Policy'' the 
                following: ``and publish such report on the website of 
                such Federal agency as soon as practicable''; and
            (3) in subsection (gg)(6), by inserting ``Congress and'' 
        after ``agency to''.

SEC. 3. COMPTROLLER GENERAL REPORT ON DIVERSIFICATION AND 
              COMMERCIALIZATION.

    (a) In General.--Not later than three years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the House of 
Representatives a report on the effectiveness of the SBIR and STTR 
programs with respect to diversification of participants and 
commercialization.
    (b) Contents.--The report shall include, to the extent practicable, 
an assessment of--
            (1) the demographics of small business concerns receiving 
        SBIR or STTR awards, including new entrants and 
        underrepresented groups;
            (2) the efforts of participating agencies to broaden 
        representation and participation of new entrants and 
        underrepresented groups in the SBIR and STTR programs;
            (3) how participating agencies develop solicitation topics 
        and attract applicants;
            (4) the efforts of participating agencies to support 
        technology commercialization;
            (5) the extent to which the SBIR and STTR awards made by 
        each participating agency align with the research priorities 
        and technology needs of that participating agency; and
            (6) such other matters as the Comptroller General, in 
        consultation with the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives, determines 
        appropriate.
    (c) Definitions.--In this section:
            (1) Federal agency; sbir; sttr.--The terms ``Federal 
        agency'', ``SBIR'', and ``STTR'' have the meanings given such 
        terms in section 9(e) of the Small Business Act (15 U.S.C. 
        638(e)).
            (2) New entrant.--The term ``new entrant'' means a small 
        business concern that has not previously received an SBIR or 
        STTR award.
            (3) Underrepresented groups.--The term ``underrepresented 
        groups'' means small business concerns located in States with 
        respect to which a low level of SBIR and STTR awards have 
        historically been awarded, small business concerns owned and 
        controlled by women, and small business concerns owned and 
        controlled by socially and economically disadvantaged 
        individuals.
            (4) Participating agency.--The term ``participating 
        agency'' means a Federal agency carrying out an SBIR or STTR 
        program under section 9 of the Small Business Act (15 U.S.C. 
        638).
            (5) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3 of 
        the Small Business Act (15 U.S.C. 632).
            (6) Small business concern owned and controlled by socially 
        and economically disadvantaged individuals; small business 
        concern owned and controlled by women.--The terms ``small 
        business concern owned and controlled by socially and 
        economically disadvantaged individuals'' and ``small business 
        concern owned and controlled by women'' have the meanings given 
        such terms in section 8(d) of the Small Business Act (15 U.S.C. 
        637(d)).

SEC. 4. EXTEND THE REPORT ON AWARD TIMELINESS.

    Section 9(ii)(2)(A) of the Small Business Act (15 U.S.C. 
638(ii)(2)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``3 
        years'' and inserting ``11 years'';
            (2) in clause (i), by striking ``and'' at the end;
            (3) by redesignating clause (ii) as clause (iii); and
            (4) by inserting after clause (i) the following new clause:
                            ``(ii) provides the average and median 
                        amount of time that each Federal agency with an 
                        SBIR or STTR program takes to review and make a 
                        final decision on proposals submitted under the 
                        program; and''.

SEC. 5. PILOT PROGRAM TO ACCELERATE NATIONAL INSTITUTES OF HEALTH 
              EVALUATION PROCESS.

    (a) In General.--Section 9(hh) of the Small Business Act (15 U.S.C. 
638(hh)) is amended by adding at the end the following new paragraph:
            ``(3) Pilot program to accelerate the national institutes 
        of health sbir and sttr awards.--
                    ``(A) In general.--Not later than 1 year after the 
                date of the enactment of this paragraph, the Director 
                of the National Institutes of Health shall establish a 
                pilot program to reduce the time for awards under the 
                SBIR and STTR programs of the National Institutes of 
                Health.
                    ``(B) Award procedures.--In carrying out the pilot 
                program under subparagraph (A), the Director shall 
                develop simplified and standardized procedures across 
                all relevant awarding offices at the National 
                Institutes of Health and reduce the amount of time 
                between the provision of notice of such awards and the 
                subsequent release of funding with respect to the 
                awards to be as close to 90 days as possible.
                    ``(C) Merit review.--
                            ``(i) In general.--Under the pilot program 
                        under subparagraph (A), the Director of the 
                        National Institutes of Health may, with respect 
                        to awards under the SBIR and STTR programs of 
                        the National Institute of Health, use such peer 
                        review procedures (including consultation with 
                        appropriate scientific experts) as the Director 
                        determines to be appropriate to obtain 
                        assessments of scientific and technical merit 
                        and potential for commercialization.
                            ``(ii) Deemed.--The use of peer review 
                        procedures under clause (i) shall be deemed to 
                        fulfill any requirements applicable to the 
                        award under the SBIR or STTR program of the 
                        National Institute of Health under sections 
                        406(a)(3)(A) and 492 of the Public Health 
                        Service Act (42 U.S.C. 284a(a)(3)(A); 289a).
                    ``(D) Termination.--The pilot program under 
                subparagraph (A) shall terminate on September 30, 
                2030.''.
    (b) Evaluation Report.--Not later than three years after the date 
of enactment of this Act, the Director of the National Institutes of 
Health shall submit to the Committees on Small Business and Science, 
Space, and Technology of the House of Representatives and the Committee 
on Small Business and Entrepreneurship of the Senate an evaluation of 
the pilot program established under paragraph (3) of section 9(hh) of 
the Small Business Act (15 U.S.C. 638(hh)), as added by subsection (a), 
including an analysis of the peer review procedures used under 
subparagraph (C) of such paragraph and the effects on award times.
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