Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Policy Directives; Data Rights; Phase III Award Preference; Other Clarifying Amendments, 66342-66343 [2014-26583]

Download as PDF 66342 Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Proposed Rules SMALL BUSINESS ADMINISTRATION 13 CFR Chapter I RIN 3245–AG64 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Policy Directives; Data Rights; Phase III Award Preference; Other Clarifying Amendments Small Business Administration. Advanced Notice of Policy Directive Amendments; request for comments AGENCY: ACTION: The Small Business Administration (SBA) seeks comments from the public on two key areas of the SBIR and STTR Policy Directives that the SBA is considering revising: SBIR and STTR data rights, and the Government’s responsibilities with respect to SBIR and STTR Phase III awards. The SBA intends to provide greater clarity and detail on these issues in the Policy Directives. DATES: Comments must be received on or before January 6, 2015. ADDRESSES: You may submit comments, identified by RIN 3245–AG64, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: technology@sba.gov. Include RIN 3245–AG64 in the subject line of the message. • Mail/Hand Delivery/Courier: Edsel Brown, Office of Innovation, U.S. Small Business Administration, 409 Third Street SW., Washington, DC 20416. FOR FURTHER INFORMATION CONTACT: Edsel Brown Jr., Assistant Director, Office of Technology, Office of Innovation and Investment, (202) 205– 6450 or at technology@sba.gov. SUPPLEMENTARY INFORMATION: On August 6, 2012, SBA published a final SBIR Policy Directive at 77 FR 46806, and a final STTR Policy Directive at 77 FR 46855 (both available at www.sbir.gov), implementing the various provisions of the National Defense Authorization Act for Fiscal Year 2012 (Defense Authorization Act), Public Law 112–81, 125-Stat. 1298, related to the SBIR and STTR programs. These provisions were specifically enacted in Section 5001, Division E of the Defense Authorization Act, the SBIR/STTR Reauthorization Act of 2011 (Reauthorization Act), which amended the Small Business Act and made several amendments to the SBIR and STTR Programs. Subsequent to the publication of the SBIR and STTR final directives SBA issued clarifying amendments on January 8, 2014 at 79 FR 1303 (SBIR) and 79 FR 1309 (STTR). asabaliauskas on DSK5VPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 16:30 Nov 06, 2014 Jkt 235001 In the notices of the final directives, SBA stated it intended to update the directives on a regular basis and to restructure and reorganize the directives, as well as address certain policy issues (e.g., those concerning data rights). At this time, SBA intends to revise the SBIR and STTR policy directives to provide greater clarification of SBIR and STTR data rights and the issues related to SBIR and STTR Phase III work. SBA intends this clarification to provide additional guidance to agencies regarding the implementation of the programs, additional policy language to inform regulatory texts in the Federal Acquisition Regulation and agency supplemental regulations, and useful information for SBIR/STTR awardee and applicant firms. Although the SBIR and STTR Policy Directives are intended for use by the SBIR and STTR participating agencies, SBA believes that public input from all parties involved in the program would be invaluable. Therefore, before proceeding with proposed changes, SBA would like to know from the public if there are specific concerns that SBA should address when clarifying program policy in these identified areas. 1. SBIR/STTR Data Rights The Small Business Act provides for SBIR and STTR awardees to receive certain data rights. See e.g. 15 U.S.C. 638(j)(1)(B)(v) (‘‘retention of rights in data generated in the performance of the contract by the small business concern;’’); id. at 638(j)(2)(A) and 638(p)(2)(B)(v) (‘‘retention by a small business concern of the rights to data generated by the concern in the performance of an [SBIR or STTR] award for a period of not less than 4 years;’’). SBA’s Policy Directives also explain that agencies must protect from disclosure and non-governmental use all SBIR/STTR technical data developed from work performed under an SBIR or STTR funding agreement for a period of not less than four years from delivery of the last deliverable under that agreement (either Phase I, Phase II, or Federally-funded SBIR/STTR Phase III) unless the agency obtains permission to disclose such SBIR or STTR technical data from the awardee or applicant. See SBIR and STTR Policy Directives, section 8(b)(2). SBA has heard from small businesses that SBIR and STTR data has been disclosed to large contractors in procurement specifications, solicitations, or through reverse engineering. SBA has also received reports that Government contractors have been unaware that SBIR and STTR PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 awards have special features with regard to data rights. SBA intends to address these issues by clarifying the language on data rights in the policy directives. SBA specifically requests comments on the following: • The extent to which the awardee owns the data it generates in performance of an award. • The Government’s obligations to protect SBIR/STTR data from disclosure for at least four years following the delivery of the last deliverable of an SBIR/STTR award. • During the protection period, the Government’s right to access, review and evaluate SBIR/STTR data, but not to modify the data. • After the protection period expires, the Government’s right to use and disclose the data solely on behalf of the government, which means that the government may use and disclose data for competitive procurements (with non-disclosure agreements) but cannot use the data for commercial (nongovernmental) purposes. • Possible discrepancies between current FAR and agency supplemental regulations and SBA’s SBIR/STTR Policy Directives. • The feasibility and helpfulness of a short form data rights option (especially for grant agencies). Such a short form would be a simple agreement stating that the Government receives essentially no rights to SBIR/STTR technical data. The simplified data rights option would be for any agency or specific award. 2. SBIR/STTR Phase III Policy The Small Business Act, as implemented by the SBIR and STTR Policy Directives at section 4(c), states that a Phase III award is one that derives from, extends, or completes efforts made under prior funding agreements under the SBIR program— • in which commercial applications of SBIR-funded research or research and development are funded by non-Federal sources of capital or, for products or services intended for use by the Federal Government, by follow-on non-SBIR Federal funding awards; or • for which awards from non-SBIR Federal funding sources are used for the continuation of research or research and development that has been competitively selected using peer review or merit-based selection procedures; 15 U.S.C. 638(e)(4)(C); see also, id. at 638(e)(6)(C). If the government is interested in pursuing further work that was performed under an SBIR or STTR award, the government must, to the extent practicable, pursue that work with the SBIR or STTR awardee that performed the earlier work. E:\FR\FM\07NOP1.SGM 07NOP1 Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Proposed Rules Dated: September 15, 2014. Javier E. Saade, Associate Administrator, Office of Investment and Innovation. In the program’s recent reauthorization legislation, Congress added the following language to the Small Business Act reinforcing the responsibility of the government to pursue such work with the awardee firm: Maria Contreras-Sweet, Administrator. [FR Doc. 2014–26583 Filed 11–6–14; 8:45 am] asabaliauskas on DSK5VPTVN1PROD with PROPOSALS PHASE III AWARDS.—To the greatest extent practicable, Federal agencies and Federal prime contractors shall issue Phase III awards relating to technology, including sole source awards, to the SBIR and STTR award recipients that developed the technology. Id. at 638(r)(4). SBA is concerned that there is ambiguity or misunderstanding about how this policy governing Phase III awards should be implemented. Agencies and awardee firms may disagree as to whether new work qualifies as SBIR/STTR Phase III work. Additionally, even if there is agreement that the follow-on work is Phase III work, there may be disagreement as to how the agency is required to show preference to the SBIR/STTR awardee for the Phase III work. One question that has been raised is whether preference for the Phase III work can be shown within a competitive solicitation. Another question is how such preference can or should be shown if the SBIR or STTR awardee would perform the Phase III work as a subcontractor to a prime federal contractor. Finally, there may be uncertainty about the steps that should be taken when applying the preference. SBA intends to revise the language in the Policy Directives to clarify these issues, that is, the responsibility of agencies with regard to Phase III work and processes that can be used when determining the appropriate actions in Phase III cases. To help in the development of the revised policy guidance, SBA requests comments on the following: • Whether SBA should define ‘‘to the greatest extent practicable’’ with respect to when agencies shall issue these Phase III awards; and if so, how the phrase should be defined. • Whether, if the agency elects not to issue a Phase III sole source award to the SBIR or STTR Phase II awardee for follow-on Phase III work, there are other ways the agency could meet this statutory requirement. • Whether an SBIR or STTR awardee can receive the required Phase III preference within a full and open competition. • Whether the policy directive should outline the steps an agency must take in deciding or understanding when the Phase III preference applies. Authority: 15 U.S.C. 638 VerDate Sep<11>2014 16:30 Nov 06, 2014 Jkt 235001 BILLING CODE 8025–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2014–0755; Directorate Identifier 2014–NM–080–AD] RIN 2120–AA64 Airworthiness Directives; The Boeing Company Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: We propose to adopt a new airworthiness directive (AD) for all The Boeing Company Model 737–600, –700, –700C, –800, –900, and –900ER series airplanes, Model 757 airplanes, Model 767 airplanes, and Model 777 airplanes. This proposed AD results from fuel system reviews conducted by the manufacturer. This proposed AD would require an inspection to determine if certain spar-mounted motor-operated valve actuators for the spar-mounted fuel valves are installed, and replacement of any affected actuators. We are proposing this AD to prevent electrical energy from lightning, hot shorts, or fault current from entering the fuel tank through the actuator shaft, which could result in fuel tank explosions and consequent loss of the airplane. DATES: We must receive comments on this proposed AD by December 22, 2014. ADDRESSES: You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods: • Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments. • Fax: 202–493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. • Hand Delivery: Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. SUMMARY: PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 66343 Examining the AD Docket You may examine the AD docket on the Internet https://www.regulations.gov by searching for and locating Docket No. FAA–2014–0755; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (phone: 800–647–5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Rebel Nichols, Aerospace Engineer, Propulsion Branch, ANM–140S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, WA 98057–3356; phone: 425–917–6509; fax: 425–917–6590; email: rebel.nichols@ faa.gov. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposal. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA– 2014–0755; Directorate Identifier 2014– NM–080–AD’’ at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to https:// www.regulations.gov, including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The FAA has examined the underlying safety issues involved in fuel tank explosions on several large transport airplanes, including the adequacy of existing regulations, the service history of airplanes subject to those regulations, and existing maintenance practices for fuel tank systems. As a result of those findings, we issued a regulation titled ‘‘Transport Airplane Fuel Tank System Design Review, Flammability Reduction and Maintenance and Inspection Requirements’’ (66 FR 23086, May 7, 2001). In addition to new airworthiness standards for transport airplanes and new maintenance requirements, this E:\FR\FM\07NOP1.SGM 07NOP1

Agencies

SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 79, Number 216 (Friday, November 7, 2014)]
[Proposed Rules]
[Pages 66342-66343]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26583]



[[Page 66342]]

=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR Chapter I

RIN 3245-AG64


Small Business Innovation Research (SBIR) and Small Business 
Technology Transfer (STTR) Policy Directives; Data Rights; Phase III 
Award Preference; Other Clarifying Amendments

AGENCY: Small Business Administration.

ACTION: Advanced Notice of Policy Directive Amendments; request for 
comments

-----------------------------------------------------------------------

SUMMARY: The Small Business Administration (SBA) seeks comments from 
the public on two key areas of the SBIR and STTR Policy Directives that 
the SBA is considering revising: SBIR and STTR data rights, and the 
Government's responsibilities with respect to SBIR and STTR Phase III 
awards. The SBA intends to provide greater clarity and detail on these 
issues in the Policy Directives.

DATES: Comments must be received on or before January 6, 2015.

ADDRESSES: You may submit comments, identified by RIN 3245-AG64, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: technology@sba.gov. Include RIN 3245-AG64 in the 
subject line of the message.
     Mail/Hand Delivery/Courier: Edsel Brown, Office of 
Innovation, U.S. Small Business Administration, 409 Third Street SW., 
Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Edsel Brown Jr., Assistant Director, 
Office of Technology, Office of Innovation and Investment, (202) 205-
6450 or at technology@sba.gov.

SUPPLEMENTARY INFORMATION: On August 6, 2012, SBA published a final 
SBIR Policy Directive at 77 FR 46806, and a final STTR Policy Directive 
at 77 FR 46855 (both available at www.sbir.gov), implementing the 
various provisions of the National Defense Authorization Act for Fiscal 
Year 2012 (Defense Authorization Act), Public Law 112-81, 125-Stat. 
1298, related to the SBIR and STTR programs. These provisions were 
specifically enacted in Section 5001, Division E of the Defense 
Authorization Act, the SBIR/STTR Reauthorization Act of 2011 
(Reauthorization Act), which amended the Small Business Act and made 
several amendments to the SBIR and STTR Programs. Subsequent to the 
publication of the SBIR and STTR final directives SBA issued clarifying 
amendments on January 8, 2014 at 79 FR 1303 (SBIR) and 79 FR 1309 
(STTR).
    In the notices of the final directives, SBA stated it intended to 
update the directives on a regular basis and to restructure and 
reorganize the directives, as well as address certain policy issues 
(e.g., those concerning data rights). At this time, SBA intends to 
revise the SBIR and STTR policy directives to provide greater 
clarification of SBIR and STTR data rights and the issues related to 
SBIR and STTR Phase III work. SBA intends this clarification to provide 
additional guidance to agencies regarding the implementation of the 
programs, additional policy language to inform regulatory texts in the 
Federal Acquisition Regulation and agency supplemental regulations, and 
useful information for SBIR/STTR awardee and applicant firms.
    Although the SBIR and STTR Policy Directives are intended for use 
by the SBIR and STTR participating agencies, SBA believes that public 
input from all parties involved in the program would be invaluable. 
Therefore, before proceeding with proposed changes, SBA would like to 
know from the public if there are specific concerns that SBA should 
address when clarifying program policy in these identified areas.

1. SBIR/STTR Data Rights

    The Small Business Act provides for SBIR and STTR awardees to 
receive certain data rights. See e.g. 15 U.S.C. 638(j)(1)(B)(v) 
(``retention of rights in data generated in the performance of the 
contract by the small business concern;''); id. at 638(j)(2)(A) and 
638(p)(2)(B)(v) (``retention by a small business concern of the rights 
to data generated by the concern in the performance of an [SBIR or 
STTR] award for a period of not less than 4 years;''). SBA's Policy 
Directives also explain that agencies must protect from disclosure and 
non-governmental use all SBIR/STTR technical data developed from work 
performed under an SBIR or STTR funding agreement for a period of not 
less than four years from delivery of the last deliverable under that 
agreement (either Phase I, Phase II, or Federally-funded SBIR/STTR 
Phase III) unless the agency obtains permission to disclose such SBIR 
or STTR technical data from the awardee or applicant. See SBIR and STTR 
Policy Directives, section 8(b)(2).
    SBA has heard from small businesses that SBIR and STTR data has 
been disclosed to large contractors in procurement specifications, 
solicitations, or through reverse engineering. SBA has also received 
reports that Government contractors have been unaware that SBIR and 
STTR awards have special features with regard to data rights. SBA 
intends to address these issues by clarifying the language on data 
rights in the policy directives. SBA specifically requests comments on 
the following:
     The extent to which the awardee owns the data it generates 
in performance of an award.
     The Government's obligations to protect SBIR/STTR data 
from disclosure for at least four years following the delivery of the 
last deliverable of an SBIR/STTR award.
     During the protection period, the Government's right to 
access, review and evaluate SBIR/STTR data, but not to modify the data.
     After the protection period expires, the Government's 
right to use and disclose the data solely on behalf of the government, 
which means that the government may use and disclose data for 
competitive procurements (with non-disclosure agreements) but cannot 
use the data for commercial (non-governmental) purposes.
     Possible discrepancies between current FAR and agency 
supplemental regulations and SBA's SBIR/STTR Policy Directives.
     The feasibility and helpfulness of a short form data 
rights option (especially for grant agencies). Such a short form would 
be a simple agreement stating that the Government receives essentially 
no rights to SBIR/STTR technical data. The simplified data rights 
option would be for any agency or specific award.

2. SBIR/STTR Phase III Policy

    The Small Business Act, as implemented by the SBIR and STTR Policy 
Directives at section 4(c), states that a Phase III award is one that 
derives from, extends, or completes efforts made under prior funding 
agreements under the SBIR program--

     in which commercial applications of SBIR-funded 
research or research and development are funded by non-Federal 
sources of capital or, for products or services intended for use by 
the Federal Government, by follow-on non-SBIR Federal funding 
awards; or
     for which awards from non-SBIR Federal funding sources 
are used for the continuation of research or research and 
development that has been competitively selected using peer review 
or merit-based selection procedures;

15 U.S.C. 638(e)(4)(C); see also, id. at 638(e)(6)(C).
    If the government is interested in pursuing further work that was 
performed under an SBIR or STTR award, the government must, to the 
extent practicable, pursue that work with the SBIR or STTR awardee that 
performed the earlier work.

[[Page 66343]]

    In the program's recent reauthorization legislation, Congress added 
the following language to the Small Business Act reinforcing the 
responsibility of the government to pursue such work with the awardee 
firm:

    PHASE III AWARDS.--To the greatest extent practicable, Federal 
agencies and Federal prime contractors shall issue Phase III awards 
relating to technology, including sole source awards, to the SBIR 
and STTR award recipients that developed the technology.

Id. at 638(r)(4).
    SBA is concerned that there is ambiguity or misunderstanding about 
how this policy governing Phase III awards should be implemented. 
Agencies and awardee firms may disagree as to whether new work 
qualifies as SBIR/STTR Phase III work. Additionally, even if there is 
agreement that the follow-on work is Phase III work, there may be 
disagreement as to how the agency is required to show preference to the 
SBIR/STTR awardee for the Phase III work.
    One question that has been raised is whether preference for the 
Phase III work can be shown within a competitive solicitation. Another 
question is how such preference can or should be shown if the SBIR or 
STTR awardee would perform the Phase III work as a subcontractor to a 
prime federal contractor. Finally, there may be uncertainty about the 
steps that should be taken when applying the preference.
    SBA intends to revise the language in the Policy Directives to 
clarify these issues, that is, the responsibility of agencies with 
regard to Phase III work and processes that can be used when 
determining the appropriate actions in Phase III cases. To help in the 
development of the revised policy guidance, SBA requests comments on 
the following:
     Whether SBA should define ``to the greatest extent 
practicable'' with respect to when agencies shall issue these Phase III 
awards; and if so, how the phrase should be defined.
     Whether, if the agency elects not to issue a Phase III 
sole source award to the SBIR or STTR Phase II awardee for follow-on 
Phase III work, there are other ways the agency could meet this 
statutory requirement.
     Whether an SBIR or STTR awardee can receive the required 
Phase III preference within a full and open competition.
     Whether the policy directive should outline the steps an 
agency must take in deciding or understanding when the Phase III 
preference applies.

    Authority: 15 U.S.C. 638

    Dated: September 15, 2014.
Javier E. Saade,
Associate Administrator, Office of Investment and Innovation.

Maria Contreras-Sweet,
Administrator.
[FR Doc. 2014-26583 Filed 11-6-14; 8:45 am]
BILLING CODE 8025-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.