SBIR Reauthorized for 6 Years!
Dec 16, 2011
 
After 3 years of negotiations and 14 continuing resolutions, the Small Business Innovation Research Program has finally been given a long-term reauthorization.  Yesterday evening the Senate passed the National Defense Authorization Act (NDAA), which included language to reauthorize the SBIR and STTR programs for 6 years.  President Obama has dropped his objections to this bill and has indicated he will sign it soon, making it official.  This legislation represents a compromise between the House and Senate versions of the SBIR reauthorization, and it does introduce some changes to the SBIR program in ways that we are concerned about, but on the whole, is much closer in character to the Senate bill than the House bill.

 
Some provisions of the new SBIR legislation are:

  • SBIR and STTR reauthorized for six years
  • SBIR allocation increased from 2.5 percent to 3.2 percent over several years
  • STTR allocation increased from .3 percent to .45 percent over six years
  • Large VC participation increased to 25 percent for NIH, DOE, and NSF, and 15 percent for other agencies
  • Shortening the time for final decisions to 90 days
  • Shortening the amount of time between decision and release of funds, with flexibility for the NIH
  • Sec. 505, aka the “Velazquez Amendment” that would set arbitrary caps to limit firms to a certain number and dollar of awards was successfully removed, and is not in the reauthorization language.  Instead, the bill creates a process by which the agencies, with 60 days for public comment, can create guidelines to assess whether firms are moving along their research and developing the technologies and processes that solve the government’s problems or are commercialized. 
  • The bill provides discretion for three agencies (DoD, NIH, and DoEd) to skip Phase I if the business can demonstrate it has done the equivalent work of Phase II.

To review the section of the NDAA that reauthorizes SBIR, click here: 
SBIR Reauthorization Language From NDAA Conference Report
 
We want to thank all our friends on the Hill for their tireless work the past three years in getting this deal done, especially Senators Olympia Snowe and Mary Landrieu for their efforts in getting SBIR reauthorization language attached to the NDAA.  Senator Landrieu, in particular, has been the champion of this effort, and this deal was finally completed only after she took the initiative last week to meet member-to-member with Representatives Sam Graves and Ralph Hall and hammer out a deal.
 
With the SBIR reauthorized, the next step will be implementation of new rules and regulations at Federal agencies to comply with the changes in the SBIR program.  SBA will develop a policy directive for agencies, and the SBTC will be in communication with the SBA and the agencies to provide our input.   Starting in January of next year, we will begin working on an implementation plan, and likely a series of white papers drafted by committee for specific agencies, as we have done in the past with the DOD and DOE.
 

SBTC Conference Call December 20

The SBTC will host a membership conference call next Tuesday to discuss the new SBIR reauthorization legislation.
 
SBTC Conference Call
Tuesday, December 20
11:00am EST
Phone #:  661 673-8600
Pass #:  925509#

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