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1 H.R. 6368, Encouraging Small Business Innovators 1 (October 2, 2018)

handle is hein.congrec/cboesbi0001 and id is 1 raw text is: 




                   CONGRESSIONAL BUDGET OFFICE

U                             COST ESTIMATE
                                                                   October 2, 2018


                                   H.R. 6368
                    Encouraging Small Business Innovators

            As passed by the House of Representatives on September 25, 2018


Under current law, the Small Business Innovation Research (SBIR) program requires
federal agencies with extramural budgets for research and development (R&D) that
exceed $100 million per year to set aside 3.2 percent of that budget for contracts with
small businesses. (Extramural budgets consist of expenditures for activities not
performed by agency employees.) Likewise, the Small Business Technology Transfer
(STTR) program requires federal agencies with extramural budgets for R&D that exceed
$1 billion per year to set aside 0.45 percent of that budget for cooperative research
between small businesses and a federal laboratory or nonprofit research institution.
Eleven agencies currently participate in at least one of those programs. H.R. 6368 would
expand the definition of R&D to include the testing and evaluation of certain activities.

The act also would direct the Small Business Administration (SBA) to increase the past
performance ratings of small businesses that have participated in the SBIR or STTR
programs and that serve as a mentor to a small business that seeks to participate in one of
those programs. Lastly, H.R. 6368 would amend the Federal Acquisition Regulations to
define an assisted acquisition and allow the General Services Administration (GSA) to
assist agencies with SBIR or STTR contract awards.

Using information from the SBA, CBO estimates that expanding the scope of the
definition of research and development would not affect the number of agencies currently
participating in the SBIR or STTR programs; however, it would increase the amount that
each agency would be required to set aside for small business contracts. Because the act
would require agencies to set-aside money for small business contracts that they would
still otherwise spend and because the change would not affect the underlying costs of
administering the SBIR or STTR programs, CBO estimates that implementing those
provisions would have no significant cost.

Using information from the SBA and GSA, CBO estimates that implementing the
legislation would cost $1 million over the 2019-2023 period for the SBA to update
program rules and increase past performance ratings and for GSA to provide additional
assistance on contract awards; such spending would be subject to the availability of
appropriated funds.

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