117-s-4900117th CongressWALLET

SBIR and STTR Extension Act of 2022

Sponsored By: Senator Cardin, Benjamin L. [D-MD]

Became Law

Summary

Strengthening security and oversight of federally funded small-business research. This law reauthorizes SBIR and STTR programs through September 30, 2025 and layers in new rules on foreign risk, disclosure, performance standards, and oversight to protect national security and program integrity.

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  • Small businesses applying for SBIR or STTR awards must disclose owners, foreign affiliations, participation in foreign talent programs (explicitly including China), venture capital ties, recent technology sales, and related contracts going back five years. Agencies can deny awards, require repayment for material misstatements, and demand ongoing updates if ownership or disclosures change.
  • Federal agencies that run SBIR/STTR must implement a risk-based due diligence program that assesses cybersecurity, patents, employee ties, and foreign ownership. Agencies may use up to 2 percent of SBIR funds for these checks and must produce reports, GAO studies, and Inspector General audits to verify compliance.
  • Program design changes include a DoD-led Innovation Open Topics effort with at least one open-topic announcement per DoD component each year and higher minimum performance standards for experienced awardees with thresholds tied to more than 50 or 100 past awards. GAO must compare open and conventional topics and report outcomes over multiple years.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 2 costs, 0 mixed.

SBIR regulars face higher standards

Beginning April 1, 2023, frequent SBIR/STTR winners face higher performance bars. If you had over 50 Phase I awards in five years, your Phase I standard doubles. If you had over 50 Phase II awards in ten years, you must average $250,000 in sales or investments per award. Over 100 Phase II awards requires a $450,000 average. Only documented, non‑federally funded sales from the past five fiscal years count. Failing the bar can cap you at 20 total Phase I and II awards from an agency for one year. Rules end September 30, 2025. GAO also studies the impact of high‑volume firms.

Tighter security checks for SBIR firms

Agencies that run SBIR/STTR now use risk-based security checks on applicants. They review cybersecurity, patents, staff, and foreign ties. The SBA issues guidance within 180 days, and agencies must implement within 270 days. Agencies can use up to 2% of SBIR funds for these checks through September 30, 2025. Key terms are defined, naming countries of concern like China, Russia, Iran, and North Korea. Awardees must report changes and may have to repay all funds for material misstatements or risky ownership changes. Agencies and GAO must report on foreign influence and due‑diligence practices.

Open-topic DoD awards expand access

The Defense Department runs open‑topic SBIR/STTR calls to draw in more nontraditional firms. Each DoD component must post at least one open‑topic announcement per year. DoD starts these activities within 180 days of enactment. SBA reports show open‑topic results versus conventional topics. GAO compares outcomes within one year and then yearly for three years.

SBIR and STTR extended to 2025

This law extends the SBIR and STTR programs through September 30, 2025. It also clarifies that 'Administration' and 'Administrator' mean the Small Business Administration and its head. These changes take effect upon enactment.

GAO review of SBIR subcontracting

Within one year, GAO reports how SBIR/STTR awardees use subcontractors. The report shows dollars going to subcontractors, including large firms, and checks rule compliance.

No private changes to SBIR topics

Agencies must prevent private parties from changing SBIR/STTR topic rules after a topic is chosen. They can only clarify wording. Agencies that fail are referred to the SBA Inspector General.

Sponsors & CoSponsors

Sponsor

Cardin, Benjamin L. [D-MD]

MD • D

Cosponsors

  • Sen. Ernst, Joni [R-IA]

    IA • R

    Sponsored 9/20/2022

Roll Call Votes

All Roll Calls

Yes: 415 • No: 9

house vote • 9/29/2022

On Motion to Suspend the Rules and Pass

Yes: 415 • No: 9

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