We can all now breathe a collective sigh of relief.
The SBIR/STTR programs were set to expire on September 30 but the reauthorization was passed by the House after passing the Senate. This now ensures that there will be no expiration of the SBIR and STTR program for the next 3 years, moving the termination date to September 30, 2025 as well as make certain changes to the program regarding reporting requirements related to research security and increased standards and benchmarks for multiple award winners.
Notable revisions include:
Limiting foreign risks through due diligence and disclosure obligations
The bill includes a due diligence program to determine security risks presented by small businesses that are affiliated with foreign interests. These programs will be mandated to assess a small business’ cybersecurity practices, patent portfolio, and foreign ownership, including any financial ties or other obligations to a foreign country, person, or entity.
Increased minimum performance standards for repeat awardees
The bill will require those receiving 50 or more Phase I awards during the previous five fiscal years to have an average of at least two Phase II awards per four Phase I awards. Failure to do so will limit the amount of Phase I and Phase II awards a small business can receive to 20 for one year after the date the agency makes the sub-standard performance determination. To track progress of firms transitioning from Phase II to Phase III, businesses receiving more than 50 Phase II awards during the previous five fiscal years must demonstrate an average of $250,000 in sales and investments per Phase II award received during that period. Sales will be increased to $450,000 if a small business receives more than 100 Phase II awards in the previous five fiscal years.
Agencies are required to implement these performance standards by April 1, 2023. BBCetc will continue to keep you informed of any developments as the agencies adopt these requirements.
If you have any questions, contact BBCetc at 734-930-9741.