SUMMARY: This document revises the Small Business Innovation Research (SBIR) Program Policy Directive. This revised Policy Directive reflects statutory amendments to the SBIR Program and provides guidance to Federal agencies for the general conduct of the program.

DATES: This final Policy Directive is effective on September 24, 2002.

FOR FURTHER INFORMATION CONTACT: Maurice Swinton, Assistant Administrator for Technology, Office of Technology, Office of Government Contracting, Office of Government Contracting/Business Development, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416 or via e-mail to [email protected].

SUPPLEMENTARY INFORMATION: In 1982, Congress enacted the Small Business Innovation Development Act of 1982 (SBIDA), Public Law 97-219 (codified at 15 U.S.C. 638), which established the Small Business Innovation Research Program (SBIR Program). The statutory purpose of the SBIR Program is to strengthen the role of innovative small business concerns (SBCs) in Federally-funded research and research and development (R/ R&D). The SBIR Program is a phased process, uniform throughout the Federal Government, of soliciting proposals and awarding funding agreements for R/R&D to meet stated agency needs or missions. To stimulate and foster scientific and technological innovation, including increasing commercialization of Federal R/R&D, the program must follow a uniform competitive process of three phases: Phase I, Phase II, and Phase III.

SBIDA requires the U.S. Small Business Administration (SBA) to ``issue Policy Directives for the general conduct of the SBIR programs within the Federal Government.'' 15 U.S.C. 638(j)(1). SBA published its first Policy Directive, Policy Directive No. 65-01, 19 years ago (47 FR 52966, Nov. 24, 1982). The last SBIR Policy Directive amendments were published 9 years ago (58 FR 6144-6158, Jan. 26, 1993).

In December of 2000, Congress enacted the Small Business Innovation Research Program Reauthorization Act of 2000 (Reauthorization Act), Public Law 106-554. The Reauthorization Act extends the SBIR Program through September 30, 2008. In addition, the Reauthorization Act: (1) Requires SBA to clarify that the rights to data generated during the performance of an SBIR award apply to all SBIR awards, including Phase I, II, and III; (2) requires the establishment of SBIR Program Government-accessible and public-accessible databases; (3) requires that each application for a Phase II award contain a succinct commercialization plan; (4) requires agencies to report to SBA all instances in which the agency pursues research, development, or production of a technology developed by an SBIR Phase I or II awardee and determined that it was not practicable to enter into a follow-on Phase III award with that awardee; (5) clarifies when a Phase III award can be issued; (6) requires agencies with SBIR budgets over $50,000,000 to enter into an agreement with the National Academy of Sciences for the National Research Council to conduct a review of their SBIR Program; (7) requires agencies to report to SBA annually on the calculations of the agency's extramural budget within 4 months of enactment of the agency's annual Appropriations Act; and (8) establishes the Federal and State Technology (FAST) Partnership Program to strengthen the technological competitiveness of SBCs in the United States.

To implement these statutory changes, and to streamline the current Directive, SBA published a proposed Policy Directive on May 18, 2001. See 66 FR 27721. The public comment period closed on June 18, 2001. However, SBA believed that SBCs needed more time to respond and therefore re-opened the comment period until July 23, 2001. 66 FR 33598 (June 22, 2001). SBA received over 200 comments from 30 different comment letters on the proposed Directive. This final Directive includes changes based on some of the comments received.