After a nearly 4-month lapse in authority, reauthorization of the SBIR/STTR programs is finally moving forward in the Senate thanks to a deal struck between Senator Markey (D-MA) and Senator Ernst (R-IA).

The ‘‘Small Business Innovation and Economic Security Act’’, was introduced by both Senator Ernst and Senator Markey via the hotline process today, setting it up to be quickly passed and sent to the House of Representatives next week, before being sent to the President’s desk.  This bill is the result of lengthy and at times contentious negotiations between Senator Markey and Senator Ernst.  While the House last year passed a short-term extension last September to keep the SBIR programs going that was supported by Senator Markey, it was ultimately blocked by Senator Ernst, resulting the lapse that led to 4 months without the critical funding these programs provide to high-tech small businesses.

In addition to extending SBIR/STTR for 5 and half years, the compromise legislation contains a number of changes to the program that small businesses will need to be aware of.  We will provide more detail on these changes in the future, but below is a brief section-by-section summary:

  • Sec. 2: Strengthening and standardizing foreign risk/due diligence requirements
  • Sec. 3: Creation of a “strategic breakthrough award” post-phase 2 program that allows agencies to make jumbo awards up to $30 million under certain circumstances
  • Sec. 4: Requires agencies to set a cap on the number of proposals a small business can submit to the SBIR/STTR programs on either a per-fiscal-year, per-solicitation, or per-topic basis.
  • Sec. 5: Requires training of federal agencies’ acquisition workforces on Phase III awarding
  • Sec. 6: Encourages Procurement Center Representatives to utilize Phase III, and the agencies to create standardized model contracts for Phase I II and III
  • Sec. 7: Changes TABA to allow cybersecurity assistance and utilize funding for employee training and hiring, among other things
  • Sec. 8: Improves SBIR/STTR data collection practices, requiring better tracking of direct to Phase II, Phase III, and subcontracting data
  • Sec. 9: Extends SBIR/STTR termination date to September 30, 2031
  • Sec. 10: Extends all pilot program termination dates to September 30, 2031
SBTC is grateful to Senator Markey and Senator Ernst for working together in spite of trying circumstances to finally get this essential source of small business funding through the Senate.  We are also are thankful to Representative Williams (R-TX) and Representative Velazquez (D-NY) for their leadership in passing a short-term extension last year, as well as their support of the process in the Senate to get a deal done.  Follow the link below to download and view the bill: